When both demand and supply curve shift leftward, _____.

equilibrium quantity decreases

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equilibrium price may increase, decrease or remain unchanged

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equilibrium quantity may increase, decrease or remain unchanged

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equilibrium price decreases

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Solution

The correct options are
C equilibrium quantity decreases
D equilibrium price may increase, decrease or remain unchanged
When both the demand curve and the supply curve shift towards the left, the equilibrium quantity decreases but the equilibrium price may increase decrease or remain the same depending on the magnitude of shifts in the two curves.

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