Which of the following statement/statements are true?
Statement 1: When decrease in demand is more than decrease in supply, leftward shift in supply curve will be more than leftward shift in demand.
Statement 2: When decrease in demand is more than decrease in supply, price increases and quantity remains constant.

Both the statements are false.

The correct answer is Option 2: Both the statements are false.

• Statement 1: "When decrease in demand is more than decrease in supply, leftward shift in supply curve will be more than leftward shift in demand."

  • This is false because if the decrease in demand is greater than the decrease in supply, the leftward shift in demand will be larger than the leftward shift in supply.
  • The supply curve does not shift more than the demand curve in this case; instead, demand contracts more significantly.

• Statement 2: "When decrease in demand is more than decrease in supply, price increases and quantity remains constant."

  • This is false because a greater decrease in demand will reduce the equilibrium price rather than increasing it.
  • Additionally, the equilibrium quantity will decrease, not remain constant, as both demand and supply have shifted leftward.