which of the following would cause an increase in the equilibrium price and decrease in the equilibrium…
which of the following would cause an increase in the equilibrium price and decrease in the equilibrium quantity of watermelon?\na. an increase in demand and an increase in supply.\nb. an increase in demand and an increase in supply greater than the increase in demand.\nc. a decrease in supply.\nd. a decrease in demand and an increase in supply.
Answer
Brief Explanations:
When supply decreases, the supply curve shifts left - ward. With demand unchanged, the equilibrium price rises and the equilibrium quantity falls. An increase in demand and supply (A) may increase quantity but effect on price is ambiguous. When supply increases more than demand (B), quantity increases and price may fall. A decrease in demand and increase in supply (D) will decrease price and effect on quantity is ambiguous.
Answer:
C. A decrease in supply.