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Tpy6a [65]
3 years ago
9

Suppose demand increases and supply decreases. what will happen?

Business
1 answer:
sergeinik [125]3 years ago
4 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. 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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