Question

N

19

19. Suppose that demand for a good increases and, at the same time, supply of the good decreases. What
would happen in the market for the good?
a. Equilibrium price would decrease, but the impact on equilibrium quantity would be
ambiguous.
b. Equilibrium price would increase, but the impact on equilibrium quantity would be
ambiguous.
c. Equilibrium quantity would decrease, but the impact on equilibrium price would be
ambiguous.
d. Equilibrium quantity would increase, but the impact on equilibrium price would be Si
ambiguous.
1*
Figure 4-24
The diagram below pertains to the demand for turkey in the United States.