tb mc qu. 03 - 151 which of the following statements. which of the following statements is correct? multiple…
tb mc qu. 03 - 151 which of the following statements. which of the following statements is correct? multiple choice if demand increases and supply decreases, equilibrium price will fall. if demand decreases and supply increases, equilibrium price will rise. if supply increases and demand decreases, equilibrium price will fall. if supply declines and demand remains constant, equilibrium price will fall.
Answer
Brief Explanations:
In economics, when supply increases and demand decreases, there is a surplus of goods in the market. Sellers will have to lower prices to sell their products, causing the equilibrium price to fall. When demand increases and supply decreases, equilibrium price rises. When demand decreases and supply increases, equilibrium price falls. When supply declines and demand is constant, equilibrium price rises due to scarcity.
Answer:
If supply increases and demand decreases, equilibrium price will fall.