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Given a Positively Sloped Supply Curve, a Rise in the Demand

Question 85

Multiple Choice

Given a positively sloped supply curve, a rise in the demand for that commodity causes


A) a decrease in the equilibrium price and an increase in the equilibrium quantity exchanged.
B) an increase in both the equilibrium price and the equilibrium quantity exchanged.
C) a fall in sales of that commodity.
D) a shortage of other goods.
E) a decrease in both the equilibrium price and the equilibrium quantity exchanged.

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