Answer to Question #209765 in Economics for Paballo

Question

• Which one of the following statements is incorrect? A. The impact of a simultaneous decrease in demand and supply on the equilibrium quantity is impossible to predict.
•  B. A simultaneous increase in demand and supply have an uncertain impact on price.
•  C. An increase in supply tends to result in a lower price.
•  D. A simultaneous increase in demand and supply tends to result in a higher equilibrium quantity in the market.

Answer 1

A. The impact of a simultaneous decrease in demand and supply on the equilibrium quantity is impossible to predict.