212F 21313 214F 21513 If demand increases while supply simultaneously decreases, equilibrium price (rises, falls, may either rise or fall) and equilibrium quantity (rises, falls, may either rise or fall). If demand decreases while supply simultaneously decreases, equilibrium price (rises, falls, may either rise or fall) and equilibrium quantity (rises, falls, may either rise or fall). 1When government imposes a ceiling price below the equilibrium price, a results. When government sets a oor price above the equilibrium price, a results. The general demand flmction for good A is Qd =LZBD-6P+O.5M 10PB+43+211 +3N where Qa = quantity demanded of good A per month, P = the price of good A, M = average household income, Pa = price of related good B, S = a consumer taste index, P2 = price consumers expect to pay next month for good A, and N = number of buyers in market for good. a. Good A is a(n) good because the slope parameter on is b. Goods A and B are because the slope parameter on is c. When P = $6, M = $40,0, P5 = $2D, 5 = 3, Pa = $2, and N = 10,030, quantity demanded of good A is units per month