Multiple Choice
If demand increases and supply decreases in a market that is in equilibrium, the equilibrium quantity will _____
A) increase while the equilibrium price will remain unchanged.
B) remain unchanged while the equilibrium price will decrease.
C) increase only if the decrease in supply is more than the increase in demand.
D) increase only if the decrease in supply is less than the increase in demand.
E) increase only if the decrease in supply is more than the decrease in demand.
Correct Answer:
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