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Question

If a rise in supply exceeds a rise in demand, then we should expect


A

the equilibrium price and quantity levels will rise.

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B

the equilibrium price will rise while the equilibrium quantity will decline.

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C

the equilibrium price will fall while the equilibrium quantity will rise

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D

the equilibrium price and quantity levels will decline

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Solution

The correct option is C

the equilibrium price will fall while the equilibrium quantity will rise


The equilibrium price will fall while the equilibrium quantity will rise.


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