How does a simultaneous decrease in both demand and supply affect quantity?

When both demand and supply decrease simultaneously, the effect on quantity is that it will decrease. This is because a decrease in demand implies that consumers are less willing or able to purchase goods at existing prices, leading to a lower quantity demanded. Similarly, a decrease in supply indicates that producers are producing less of the good, leading to a lower quantity supplied.

In the market, these two trends interact. Since both demand and supply are moving downward, the equilibrium quantity in the market, which is determined by the intersection of the demand and supply curves, will result in a lower quantity of goods available at market. While the effects on price may differ depending on the magnitudes of the shifts in demand and supply, the quantity will invariably decline. Thus, a decrease in both demand and supply results in a decrease in equilibrium quantity.