Exhibit 4-3 Supply and demand curves
The market shown in Exhibit 4-3 is initially in equilibrium at E4. Changes in market conditions result in a new equilibrium at E3. This change is stated as a(n):
A. increase in supply and an increase in quantity demanded.
B. increase in supply and a decrease in demand.
C. decrease in supply and a decrease in quantity demanded.
D. increase in demand an increase in supply.
Answer: C
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