Answer to Question #235700 in Economics of Enterprise for likenaw

Question

9. An increase in market supply and decrease in market demand will result in A. A decrease in equilibrium price and an increase in equilibrium quantity. B. A decrease in equilibrium price – the change in equilibrium quantity is indeterminate. C. An increase in equilibrium quantity – the change in equilibrium price is indeterminate. D. A decrease in equilibrium price and quantity.

Answer 1

b) decrease in equilibrium price – the change in equilibrium quantity is indeterminate

Decrease in market demand makes the equilibrium price to reduce while the the excess supply makes the price To similarly reduce.