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Asked Oct 30, 2019
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If the supply of tennis balls, a complement to tennis racquets, decreases, what will happen to the equilibrium price of tennis balls and to the equilibrium price of tennis racquets?
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If the supply of tennis balls decreases, the equilibrium price of tennis balls increases and the quantity demanded reduces (refer graph). Complements are goods...

Price
S1
of Tennis
balls
E1
P1
E
P
D
Quantity of Tennis
balls
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Price S1 of Tennis balls E1 P1 E P D Quantity of Tennis balls

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Supply and Demand

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