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

Question

Responses

demand decreases and supply decreases
demand decreases and supply decreases

demand decreases and supply increases
demand decreases and supply increases

demand increases and supply decreases
demand increases and supply decreases

demand increases and supply increases

Answer 1

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

• When demand decreases, the quantity demanded at any given price goes down.
• When supply increases, the quantity supplied at any given price goes up, leading to excess supply at previous equilibrium prices.

The combined effect of decreased demand and increased supply typically leads to a lower equilibrium quantity.