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Commerce · Q10

Economics

Graduate and Post Graduate · Commerce · question 10

Q10

Assume that consumer's income and the number of sellers in the market for good X both falls. Based on this information, we can conclude with certaintty that the equilibrium

A.
Price will decrease
B.
Price will increase
C.
Quantity will decrease
Answer
D.
Quantity will increase

Answer: Option C

Solution

Answer: Option C
Solution:
We can conclude with certaintty that the equilibrium quantity will decrease.