Final answer:
When both demand and supply decrease, but the decrease in demand is greater than the decrease in supply, the equilibrium price will decrease and the equilibrium output will decrease as well.
Step-by-step explanation:
When both demand and supply decrease, but the decrease in demand is greater than the decrease in supply, the equilibrium price will decrease and the equilibrium output will decrease as well.
This is because a greater decrease in demand than supply will result in a shift in the demand curve to the left, causing a decrease in both price and quantity.
The decrease in supply will also cause a leftward shift of the supply curve, which further contributes to the decrease in price and quantity. However, since the decrease in demand is greater, it has a more dominant effect on the equilibrium price and output.