Market for a good is in equilibrium. There is simultaneous "decrease" both in demand and supply of the good. Explain its effect on market price.

Market for a good is in equilibrium. There is simultaneous "decrease"

1.	Market for a good is in equilibrium. There is simultaneous "decrease" both in demand and supply of the good. Explain its effect on market price.
Answer» Solution :If the decrease in demand is EQUAL to decrease in SUPPLY then the EQUILIBRIUM PRICE will not change. If the decrease in demand is more than the decrease in supply then the equilibrium price will fall. If the decrease in demand is less than the decrease in supply then the equilibrium price will INCREASE.