The effect of an increase in demand for a commodity accompanied by a decrease in supply will be to?
a
raise the price of the commodity and affect the quantity in an indeterminate way
b
decrease the equilibrium quantity and affect the price in an intermediate way
c
raise its price as well as the equilibrium quantity
d
lower it price while affecting the equilibrium quantity in an interminate way
Explanation
Correct Option
cNo explanation available
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Brainpill
10 years ago
Never! the answer is A. an increase in demand and a decrease in supply leads 2 increase in price.
