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What would cause a decrease in equilibrium price and quantity?A decrease in demand and an increase in supply will cause a fall in equilibrium price, but the effect on equilibrium quantity cannot be determined. 1. For any quantity, consumers now place a lower value on the good, and producers are willing to accept a lower price; therefore, price will fall.
Which of the following would cause both the equilibrium price and equilibrium quantity of potatoes?Which of the following would cause both the equilibrium price and equilibrium quantity of potatoes (assume that potatoes are an inferior good) to decrease? A decrease in supply causes equilibrium price to rise; the increase in price then results in a decrease in demand.
Which of the following would cause both the equilibrium price and equilibrium quantity of barley?Which of the following would cause both the equilibrium price and equilibrium quantity of barley (assume that barley is an inferior good) to increase? According to the law of demand, an increase in the price of baseball trading cards causes: people to buy fewer trading cards.
What can cause a decrease in both the equilibrium price and quantity of coffee in a market?Both the demand and the supply of coffee decrease. Since decreases in demand and supply, considered separately, each cause equilibrium quantity to fall, the impact of both decreasing simultaneously means that a new equilibrium quantity of coffee must be less than the old equilibrium quantity.
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