In the case of demand decreasing and supply increasing, what is the expected impact on equilibrium price?

CA Foundation · Business Economics · PYQS · September 2024
In the case of demand decreasing and supply increasing, what is the expected impact on equilibrium price?
(A) A. Equilibrium price falls
(B) B. Equilibrium price rises
(C) C. Equilibrium price remains constant
(D) D. Equilibrium price remains uncertain

Suggested Answer and Working Notes:

Correct Answer: Option (A)

A. Equilibrium price falls

Topics: Theory of Demand and Supply

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