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Suppose the Supply of Soy Beans Increases While the Demand

Question 103

Multiple Choice

Suppose the supply of soy beans increases while the demand for soy beans decreases. This will cause:


A) an increase in the equilibrium price, but the effect on quantity exchanged cannot be determined.
B) a decrease in equilibrium quantity exchanged, but the effect on price cannot be determined.
C) a decrease in equilibrium price, but the effect on quantity exchanged cannot be determined.
D) an increase in equilibrium quantity exchanged, but the effect on price cannot be determined.

Correct Answer:

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