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Homework answers / question archive / If supply decreases and demand increases: A) the market-clearing price definitely rises, and the equilibrium quantity falls

If supply decreases and demand increases: A) the market-clearing price definitely rises, and the equilibrium quantity falls

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If supply decreases and demand increases:

A) the market-clearing price definitely rises, and the equilibrium quantity falls.

B) the market-clearing price definitely rises, and the equilibrium quantity is indeterminate.

C) the market-clearing price definitely falls, and the effect on the equilibrium quantity is indeterminate.

D) the effect on the market-clearing price is indeterminate, and the equilibrium quantity definitely falls.

Option 1

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Option 2

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