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Which of the following statements is correct?

A. If supply increases and demand decreases, equilibrium price will fall.
B. If demand increases and supply decreases, equilibrium price will fall.
C. If demand decreases and supply increases, equilibrium price will rise.
D. If supply decreases and demand remains constant, equilibrium price will fall.



Answer :

GinnyAnswer

Final answer:

Supply and demand shifts impact equilibrium price and quantity.


Explanation:

When supply increases and demand decreases, the equilibrium price will fall. Conversely, when demand increases and supply decreases, the equilibrium price will rise. These changes occur because equilibrium price is determined by the intersection of supply and demand curves, affecting the quantity demanded and supplied.


Learn more about Equilibrium Price and Quantity here:

https://brainly.com/question/40478596


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