If the Supply of a Product Decreases and the Demand

question 191

Multiple Choice

If the supply of a product decreases and the demand for that product simultaneously increases, we can conclude that equilibrium:

• A)price must rise, but equilibrium quantity may either rise, fall, or remain unchanged.
• B)price must rise and equilibrium quantity must fall.
• C)price and equilibrium quantity must both increase.
• D)price and equilibrium quantity must both decline.

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