Exhibit 4-3 Supply and demand curves
Initially the market shown in Exhibit 4-3 is in equilibrium at P3, Q3 (E3). Changes in market conditions result in a new equilibrium at P2, Q2 (E2). This change is stated as a:
A. decrease in demand and an increase in supply.
B. decrease in demand and a decrease in quantity supplied.
C. decrease in quantity demanded and an increase in quantity supplied.
D. decrease in quantity demanded and an increase in supply.
Answer: B
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