AP Macroeconomics Question 97: Answer and Explanation

Test Information

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Question: 97

11. Suppose the demand for a particular product falls while the supply simultaneously increases. What will happen to the equilibrium price and the equilibrium quantity?

  • A. The equilibrium price will rise while the equilibrium quantity is indeterminate.
  • B. The equilibrium price will fall while the equilibrium quantity is indeterminate.
  • C. The equilibrium price is indeterminate while the equilibrium quantity will rise.
  • D. The equilibrium price is indeterminate while the equilibrium quantity will fall.
  • E. There is not enough information to answer definitely.

Correct Answer: B

Explanation:

(B)