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Suppose Demand Decreases, but There Is No Change in Supply

Question 133

Multiple Choice

Suppose demand decreases, but there is no change in supply. As the market reaches its new equilibrium:


A) excess demand will lead the price to rise.
B) excess supply will lead the price to rise.
C) excess demand will lead the price to fall.
D) excess supply will lead the price to fall.

Correct Answer:

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