The effect of an increase in demand for a commodity accompanied by a decrease in...
ECONOMICS
JAMB 2002
The effect of an increase in demand for a commodity accompanied by a decrease in supply will be to?
- A. raise the price of the commodity and affect the quantity in an indeterminate way
- B. decrease the equilibrium quantity and affect the price in an intermediate way
- C. raise its price as well as the equilibrium quantity
- D. lower it price while affecting the equilibrium quantity in an interminate way
Correct Answer: C. raise its price as well as the equilibrium quantity
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