Asked by caswel mduduzi on May 10, 2024

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If demand is downward sloping,a decrease in supply with no change in demand will lead to a(n) _____ in equilibrium quantity and a(n) _____ in equilibrium price.

A) increase;increase
B) increase;decrease
C) decrease;increase
D) decrease;decrease

Equilibrium Quantity

The quantity of goods or services at which demand equals supply, and there is no tendency for the market price to change.

Equilibrium Price

The price at which the quantity of a good demanded equals the quantity supplied, leading to a stable market condition.

Demand

The amount of a product or service that buyers are ready and capable of buying at different price points.

  • Comprehend the connection between changes in supply and demand curves and their effects on the equilibrium price and quantity.
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KJ
Kemuel J Rodriguez MontalvoMay 11, 2024
Final Answer :
C
Explanation :
When supply decreases with no change in demand, the equilibrium point moves along the demand curve towards a higher price and lower quantity. Therefore, there will be a decrease in equilibrium quantity and an increase in equilibrium price.