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kaheart [24]
4 years ago
9

How about a change supply resulting in a lower equilibrium price? What causes change in the equilibrium prices?

History
1 answer:
Kryger [21]4 years ago
7 0
A decrease in demand and an increase in supply will cause a fall in equilibrium price, but the effect on equilibrium quantity cannot be determined. 1. For any quantity, consumers now place a lower value on the good, and producers are willing to accept a lower price; therefore, price will fall.
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