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

• This statement is false. If the decrease in demand is equal to the decrease in supply, the leftward shifts of the curves will be of equal magnitude. There is no reason one would be "more" than the other.

Statement 2: When decrease in demand is equal to decrease in supply, price increases and quantity decreases.

• • A decrease in demand (leftward shift) by itself would lead to a decrease in both price and quantity.
  • A decrease in supply (leftward shift) by itself would lead to an increase in price and a decrease in quantity.
  • When both decrease by equal magnitudes, the quantity will definitely decrease. The price will remain constant.
  • Therefore, the statement "price increases and quantity decreases" is false. In this case, price remains constant and quantity decreases.