equilibrium price
Question
What happens to equilibrium price and quantity when there is a simultaneous decrease in demand and decrease in
supply?
1 We expect equilibrium quantity to increase, but equilibrium price is indeterminate.
2 We expect equilibrium quantity to decrease, but equilibrium price is indeterminate.
3 We expect equilibrium price to decrease, but equilibrium quantity is indeterminate.
4 We expect equilibrium price to increase, but equilibrium quantity is indeterminate.