Asked by

Julian Quintana
on Oct 26, 2024

verifed

Verified

If demand decreases and supply increases,the direction of change in the equilibrium quantity is unpredictable unless the relative magnitudes of the demand and supply changes are known.

Equilibrium Quantity

Equilibrium quantity is the quantity of goods or services supplied and demanded at the equilibrium price, where the quantity demanded equals the quantity supplied, leading to market stability.

Demand Decreases

A situation where the desire or need for a product or service declines, often leading to lower prices and adjustments in supply.

Supply Increases

Occurs when the quantity of a good or service that a market can offer rises.

  • Assess how an oversupply and increased demand influence price adjustments in the market.
verifed

Verified Answer

TP
Tejhaun palmerNov 02, 2024
Final Answer:
Get Full Answer