Answer:
When both supply and demand decrease It may rise or fall.
Explanation:
When there is a reduction of both demand and supply, the balance output will fall, but it cannot be determined the effect on prices.
1. If demand and supply decrease, consumers would like to purchase less and companies would like to supply less, so production will decrease. As, however, the value of each unit is lower by consumers, but producers want to supply each unit at higher prices, the price effect will depend on the relative size of the two modifications.
