Suppose there are a positive demand shock and a negative supply shock in a perfectly competitive market. Which of the following cannot happen? Group of answer choices A. The equilibrium price increases. B. The equilibrium price decreases. C. The equilibrium quantity increases. D. The equilibrium quantity decreases. E. None of the above.

Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter4: Markets In Action
Section: Chapter Questions
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Suppose there are a positive demand shock and a negative supply shock in a perfectly competitive market. Which of the following cannot happen?

Group of answer choices
A. The equilibrium price increases.
B. The equilibrium price decreases.
C. The equilibrium quantity increases.
D. The equilibrium quantity decreases.
E. None of the above.
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