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When Both Supply and Demand Decrease,the Equilibrium Price

Question 115

Multiple Choice

When both supply and demand decrease,the equilibrium price:


A) increases and equilibrium quantity increases.
B) is indeterminate and equilibrium quantity increases.
C) decreases and equilibrium quantity is indeterminate.
D) increases and equilibrium quantity is indeterminate.
E) is indeterminate and equilibrium quantity decreases.

Correct Answer:

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