If Demand Decreases and Supply Increases

question 379

Multiple Choice

If demand decreases and supply increases

• A) the market clearing price will decrease, and the equilibrium quantity will increase.
• B) the market clearing price will decrease, and equilibrium quantity will decrease.
• C) the equilibrium quantity will decrease, but the change in the market clearing price cannot be determined without more information.
• D) the equilibrium price will decrease, but the change in the equilibrium quantity cannot be determined without more information.

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