Assume that consumer’s income and the number of sellers in the market for good X both falls. Based on this information, we can conclude with certainty that the equilibrium
Q. Assume that consumer’s income and the number of sellers in the market for good X both falls. Based on this information, we can conclude with certainty that the equilibrium:
- Price will decrease
- Price will increase
- Quantity will increase
- Quantity will decrease
Answer: Quantity will decrease