A Level Economics (9708)•9708/11/O/N/18

Explanation
Combined Shifts in Demand and Supply Steps:
- A fall in demand shifts the demand curve leftward, reducing equilibrium price and quantity.
- A decrease in production costs shifts the supply curve rightward, reducing equilibrium price and increasing quantity.
- The price effect reinforces: both shifts lower price, so price decreases unambiguously.
- The quantity effect opposes: demand fall lowers quantity, supply increase raises it, so quantity is indeterminate.
Why A is correct:
- Reinforcing downward pressure on price from both shifts ensures price falls, while opposing quantity effects make the change uncertain, per supply-demand equilibrium analysis.
Why the others are wrong:
- B: Price decreases definitively, not uncertain.
- C: Price decreases definitively, not uncertain.
- D: Price decreases definitively, not uncertain.
Final answer: A
Topic: The interaction of demand and supply
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