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Market for a good is in equilibrium. A decrease in supply for the good will
  • a)
    Price is unaffected
  • b)
    Only quantity exchanged is affected
  • c)
    Lower the price
  • d)
    Raise the price
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
Market for a good is in equilibrium. A decrease in supply for the good...
A decrease in demand and an increase in supply will cause a fall in equilibrium price, but the effect on equilibrium quantity cannot be determined. ... For any quantity, consumers now place a lower value on the good, and producers are willing to accept a lower price; therefore, price will fall.
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Community Answer
Market for a good is in equilibrium. A decrease in supply for the good...
Lower the price
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Market for a good is in equilibrium. A decrease in supply for the good willa)Price is unaffectedb)Only quantity exchanged is affectedc)Lower the priced)Raise the priceCorrect answer is option 'D'. Can you explain this answer?
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