Figure 3-3
-In Figure 3-3,if the market price is reduced from P₀ to P₁,then

Name: Figure 3-3 -In Figure 3-3,if the market price is reduced from P₀ to P₁,then
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Question

Figure 3-3 
-In Figure 3-3,if the market price is reduced from P₀ to P₁,then

Quizplus · Accepted Answer

When the market price is reduced from P₀ to P₁, the quantity demanded increases to Q₂ and the quantity supplied decreases to Q₁, creating a shortage of Q₂ units minus Q₁ units because demand exceeds supply at the lower price.

Figure 3-3 -In Figure 3-3,if the Market Price Is Reduced from P₀