Answer to Question #213330 in Economics for emmanuel

Question

This question is based on the following information for ice cream: At the same time that a decrease in demand for ice cream occurs during the wintertime, a new supplier enters the market which increases the supply of ice cream. From these events, we can predict that

Answer 1

From these events, we can predict that the decrease in demand and increase in supply will probably decrease the equilibrium price, but the equilibrium quantity may either increase or decrease depending on the magnitudes of the shifts.