Consider a market that is in equilibrium. If it experiences both a decrease in demand and a decrease in supply, what can be said of the new equilibrium? The equilibrium:
A. price and quantity will both rise.
B. quantity will definitely fall, while the equilibrium price cannot be predicted.
C. price and quantity will both fall.
D. price will definitely fall, while the equilibrium quantity cannot be predicted.
Answer: B
Economics
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