For a given market, the equilibrium quantity of the good or service will decrease if _____.(1 point)

Responses

demand decreases and supply decreases
demand decreases and supply decreases

demand increases and supply increases
demand increases and supply increases

demand increases and supply decreases
demand increases and supply decreases

demand decreases and supply increases

1 answer

The equilibrium quantity of the good or service will decrease if demand decreases and supply increases.

When demand decreases, the quantity demanded at every price level falls, leading to a lower equilibrium quantity. Conversely, when supply increases, the quantity supplied at every price level rises, which typically tends to increase the equilibrium quantity. However, the dominant effect on quantity depends on the magnitudes of the shifts in demand and supply.

In the specific case of demand decreasing and supply increasing, the demand curve shifts to the left (resulting in a lower quantity demanded) while the supply curve shifts to the right (resulting in a higher quantity supplied). If the decrease in demand is greater than the increase in supply, the equilibrium quantity will ultimately decrease.

Thus, if you meant to include "demand decreases and supply increases" as an option, that could be your intended answer upon reevaluation. However, from the options given, it appears that "demand decreases and supply increases" would better fit the scenario where the equilibrium quantity decreases compared to the direct options provided.