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Question

When demand curve shifts rightward, and supply curve leftward, _______.

A
equilibrium price decreases
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B
equilibrium price increases
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C
equilibrium quantity decreases
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D
equilibrium quantity and price may increase, decrease or remain unchanged
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Solution

The correct option is D equilibrium quantity and price may increase, decrease or remain unchanged
When demand curve shifts right and supply curve to the left, the equilibrium price increases but the equilibrium quantity may increase, decrease or remain same, depending on the magnitude of shift in the two curves.

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