What happens to equilibrium quantity when both the supply and demand for a good decrease?

When both the supply and demand for a good decrease, the equilibrium quantity will fall due to the interaction of these two market forces.

In a market, equilibrium is reached at the point where the quantity demanded by consumers equals the quantity supplied by producers. When demand decreases, consumers are willing to buy less at each price level. Simultaneously, when supply decreases, producers are offering less at every price point.

As both curves shift left (indicating a decrease), the new equilibrium will occur at a lower quantity than before. While the exact price adjustment can be more complex—depending on the relative magnitudes of the shifts in demand and supply—the consistent outcome is that the equilibrium quantity diminishes.

The option mentioning equilibrium quantity rising contradicts the nature of both demand and supply decreasing, while the option stating it remains unchanged overlooks the fundamental principle that changes in supply and demand will affect equilibrium. The notion that equilibrium quantity becomes unpredictable could apply in certain scenarios, but in this case, decreases in both demand and supply lead to a clear and predictable outcome of a lower equilibrium quantity.