Home
Class 14
GENERAL KNOWLEDGE
What effect will a decrease in demand an...

What effect will a decrease in demand and an increase in supply have on equilibrium price?

A

Equilibrium price will fall

B

Equilibrium price will rise

C

Equilibrium price will be constant

D

Sometimes price will rise and sometimes it will fall/

Text Solution

Verified by Experts

The correct Answer is:
A

An decrease in demand and an increase in supply will decrease the equilibrium price and vice versa but the effect on equilibrium quantity cannot be determined.
Promotional Banner

Topper's Solved these Questions

  • ECONOMICS

    PINNACLE|Exercise MCQ (COSTS, PRODUCTION,CONSUMPTIONS AND MARKET)|20 Videos

  • ECONOMICS

    PINNACLE|Exercise MCQ (NATIONAL INCOME, IFLATION, BUDGET, TAXATION AND GDP)|115 Videos

  • ECONOMICS

    PINNACLE|Exercise MCQ (MISCELLANEOUS)|54 Videos

  • CURRENT AFFAIRS

    PINNACLE|Exercise SCHEMES & PROJECTS|40 Videos

  • GEOGRAPHY

    PINNACLE|Exercise WORLD GEOGRAPHY AND MAP|3 Videos

Similar Questions

Explore conceptually related problems

Which of the following statements is/are true ? 1. If increase in demand and supply are of equal magnitude, the price will remain unchanged, but the equilibrium quantity will increase. 2. If increase in demand is of greater magnitude than increase in supply, both equilibrium price and equilibrium quantity will increase. 3. If increase in supply is of greater . magnitude than increase in demand, equilibrium price will fall but equilibrium quantity will increase. Select the correct answer using the code given below:

Explain the effect to simultaneous 'increase' in demand and supply on equilibrium price. Represent one of the possible effect to a diagram.

Explain the effect of simultaneous increases in both demand and supply on equilibrium price and quantity. Show on diagram a situation when there is no change in equilibrium price.

Explain the effect of simultaneous 'decrease' in demand and supply on equilibrium quantity. Represent one of the possible effect on a diagram.

When will (a) simultaneous increases and (b) simultaneous decreases in both demand and supply not affect the equilibrium price? Explain with the help of diagrams.

Demand Increases And Supply Decreases