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Engineering, 25.08.2020 20:01 Jakeandjenn21
Which of the following best describes the sequences of events that lead to a price increase and quantity
decrease when supply decreases?
Choose 1
When supply decreases, there is a shortage because Qs > Qp at the old price. Price will
adjust upward until the market clears at a new lower quantity.
B
When supply decreases, there is a surplus because Qs > Op at the old price. Price will
adjust upward until the market clears at a new lower quantity.
When supply decreases, there is a shortage because Qs
adjust upward until the market clears at a new lower quantity.
When supply decreases, there is a surplus because Qs < Qd at the old price. Price will
adjust upward until the market clears at a new lower quantity,
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