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The Supply of Coffee Has Increased Twice as Much as the Demand

Question 255

Multiple Choice

The supply of coffee has increased twice as much as the demand for coffee. As a result, we can predict a(n) :


A) decrease in equilibrium price, but equilibrium quantity is indeterminate.
B) increase in equilibrium price, but equilibrium quantity decreases.
C) decrease in equilibrium price and equilibrium quantity.
D) decrease in equilibrium price, but equilibrium quantity increases.

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