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Suppose That It Is Observed That the Price of a Commodity

Question 31

Multiple Choice

Suppose that it is observed that the price of a commodity rises and that the quantity sold falls. From this we can deduce:


A) that the demand curve has shifted to the right, but we cannot deduce whether or not the supply curve has shifted
B) that the supply curve has shifted to the right, but we cannot deduce whether or not the demand curve has shifted
C) that the supply curve has shifted to the left, but we cannot deduce whether or not the demand curve has shifted
D) that the demand curve has shifted to the left, but we cannot deduce whether or not the supply curve has shifted

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