(Advanced analysis) Answer the question on the basis of the following information. The demand for commodity X is represented by the equation P = 10 - 0.2Q and supply by the equation P = 2 + 0.2Q. Refer to the given information. If demand changed from P =
10 - .2Q to P = 7 - .3Q, we can conclude that:
A. demand has increased.
B. demand has decreased.
C. supply will increase.
D. supply will decrease.
Answer: B
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