Question

A)Suppose supply decreases and demand increases. What effect will this have on the price?

1- it will fall 

2- it may rise or fall

3- it will rise 

4- it will remain the same 

 

B) Suppose both supply and demand increase. What effect will this have on the equilibrium quantity? 

1- it may rise or fall 

2- it will fall

3- it will rise

4- it will remain the same.