Question

Upper A decrease in the demand for computers and a decrease in the supply of computers occur together. What is the effect on the price and quantity of computers​? Upper A decrease in the demand for computers together with a decrease in the supply of computers ​______ create a surplus or a shortage of computers at the original price. The equilibrium price of computers ​______

Answer 1

Answer:

If both the quantity demanded and quantity supplied of computers decreases, the equilibrium quantity will decrease, but the effects on the equilibrium price will depend on which decreases the most.

If the quantity demanded decreases more, the equilibrium price will decrease, but if the quantity supplied decreases more, the equilibrium price will increase.