Which of the following scenarios best describes the change in the equilibrium shown in the accompanying graph?

Name: Which of the following scenarios best describes the change in the equilibrium shown in the accompanying graph?
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Question

Quizplus · Accepted Answer

The equilibrium price and quantity both decrease, which suggests a decrease in demand or an increase in supply. Since there is no visible shift in the demand curve, it is more likely that there has been an increase in supply, which could be due to some firms leaving the market.

Which of the Following Scenarios Best Describes the Change in the Equilibrium