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what happens when supply of goods increasing and demand decreasing
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what happens when supply of goods increasing and demand decreasing
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,consumer now place a lower value on good and producer are willing to accept a lower price;therefore price will fall.The effect on output will depend on the relative size of the two changes.
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what happens when supply of goods increasing and demand decreasing
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