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We Observe a Fall in the Price of Service a and an Increase

Question 158

Multiple Choice

We observe a fall in the price of service A and an increase in the quantity of service A bought and sold. Which is a likely explanation?


A) The law of supply is violated.
B) The demand for A decreased.
C) The demand for A increased.
D) The supply of A increased.
E) The supply of A decreased.

Correct Answer:

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