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If Both Supply and Demand Decrease, Which of the Following

Question 128

Multiple Choice

If both supply and demand decrease, which of the following happens?


A) The equilibrium quantity increases.
B) The equilibrium price and the equilibrium quantity increase.
C) The equilibrium price and the equilibrium quantity decrease.
D) The equilibrium price decreases and the equilibrium quantity is indeterminate.
E) The equilibrium quantity decreases and the equilibrium price change is indeterminate.

Correct Answer:

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