Assume that consumers incomes and the number of sellers in the market for a product both decrease. Based upon this information we can conclude with certainty that equilibrium _______________.

price will increase

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price will decrease

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quantity will increase

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quantity will decrease

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Solution

The correct option is C quantity will decrease
Since the consumer income decreases the demand for the commodity will decrease and because of decrease in the number of sellers the supply will also decrease, as a result the quantity (demanded and supplied) will also decrease.

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Q. Assume that consumer's income and the number of sellers in the market for good X both falls. Based on this information, we can conclude with certainty that the equilibrium _______.

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Assume that consumers incomes and the number of sellers in the market for a product both decrease. Based upon this information we can conclude with certainty that equilibrium _______________.

The correct option is C quantity will decreaseSince the consumer income decreases the demand for the commodity will decrease and because of decrease in the number of sellers the supply will also decrease, as a result the quantity (demanded and supplied) will also decrease.

The correct option is C quantity will decrease
Since the consumer income decreases the demand for the commodity will decrease and because of decrease in the number of sellers the supply will also decrease, as a result the quantity (demanded and supplied) will also decrease.