Assume that consumer’s income and the number of sellers in the market for good A both decrease. Based upon this information, we can conclude, with certainty, that equilibrium:
A. Price will increase
B. Price will decrease.
C. Quantity will increase
D. Quantity will decrease
Answer:D
Assume that consumer’s income and the number of sellers in the market for good A both decrease. Based upon this information, we can conclude, with certainty, that equilibrium:
A. Price will increase B. Price will decrease. C. Quantity will increase D. Quantity will decrease