If the supply of bottled water decreases, the equilibrium price _ and the equilibrium quantity _.

Increases; decreases

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Decreases; increases

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Decreases; decreases

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Increases; increases

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Solution

The correct option is A Increases; decreases
If demand decreases and supply increases then equilibrium quantity could go up, down, or stay the same, and equilibrium price will go down. If demand decreases and supply decreases then equilibrium quantity goes down, and the equilibrium price could go up, down, or stay the same

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If the supply of bottled water decreases, the equilibrium price ___________ and the equilibrium quantity ___________.

If the supply of bottled water decreases, the equilibrium price _ and the equilibrium quantity _.