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Which of the Following Statements Is True

Question 123

Multiple Choice

Which of the following statements is true?


A) A decrease in demand causes a decrease in equilibrium price;the decrease in price causes supply to decrease.
B) A decrease in demand causes equilibrium price to fall;the decrease in price then results in a decrease in quantity supplied.
C) If both demand and supply increase,there must be an increase in equilibrium price;equilibrium quantity may either increase or decrease.
D) If demand decreases and supply increases one cannot determine if equilibrium price will increase or decrease without knowing which change is greater.

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