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Question: 9 options for asurplus or shortage b rise or fall...

Question details

9

Critically evaluate: In comparing the two equilibrium positions in the diagram below, I note that a smaller amount is actually demanded at a lower price. This refutes the law of demand. D, D2 Quantity

a. A decrease in demand from D to D2 results in surplus b. This causes the price to fal C. This change in price results in an increase in quantity demanded along the D2 demand curve d. This change in price results in an increase in quantity supplied. e. The new equilibrium has a lower price and alower quantity when compared to the original equilibrium. f Does this refute the law of demand: Yes g. WhyBecause the new equilibrium has a lower price and quantity

Options for

A=surplus or shortage

B= rise or fall

C= increase/decrease

D= increase/decrease

E=lower/higher and lower/higher quantity

F=yes/no

G=because there was a change in demand/because the new equilibrium has a lower price and quantity

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