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Microeconomic Theory

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter12: The Partial Equilibrium Competitive Model

Section: Chapter Questions

Problem 12.3P

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If market demand decreases at the same that market supply increases, the graphing model of demand and supply predicts that:
a
equilibrium price will decrease and equilibrium quantity will increase.
b
equilibrium price will decrease but equilibrium quantity could increase, decrease, or stay the same.
equilibrium price and equilibrium quantity will both decrease.
equilibrium quantity will increase but the change in equilibrium price cannot be determined from the information given.

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