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 _______.
A
price will decrease
No worries! We‘ve got your back. Try BYJU‘S free classes today!
B
price will increase
No worries! We‘ve got your back. Try BYJU‘S free classes today!
C
quantity will increase
No worries! We‘ve got your back. Try BYJU‘S free classes today!
D
quantity will decrease
Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses
Open in App
Solution
The correct option is A quantity will decrease 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 quantity will decrease.