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What Happens to the Equilibrium Price and Quantity When Demand

Question 75

Multiple Choice

What happens to the equilibrium price and quantity when demand decreases and at the same time supply increases, but the demand shift is relatively larger than the supply shift?


A) The equilibrium price rises, and the equilibrium quantity falls.
B) Both the equilibrium price and the equilibrium quantity will rise.
C) The equilibrium price falls, and the equilibrium quantity rises.
D) Both the equilibrium price and quantity will fall.

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