Question 36
HardOriginal questionDemand for a good falls and its supply rises at the same time. Which is certain?
Show the answer and explanation
CorrectNot quiteAnswer A
Correct answer: A
Explanation
Both changes push the price down.
Quantity is pulled down by demand and up by supply, so its direction depends on which shift is larger.
- Concept
- Opposite shifts, certain price
- Typical timeTypical
- 100 s
- Your timeYours
- —
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