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Question
Equilibrium price falls and equilibrium quantity rises when ______
Options
Decrease in demand < Decrease in supply
Increase in demand = Increase in supply
Decrease in demand < Increase in supply
Decrease in demand = Increase in supply
MCQ
Solution
Equilibrium price falls and equilibrium quantity rises when Decrease in demand < Increase in supply.
Explanation:
When the decline in demand is greater than the increase in supply, the equilibrium price falls but the equilibrium quantity rises.
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Consumer's Equilibrium
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