In which of the following cases will the effect on equilibrium output be indeterminate (i.e., depend on the magnitudes of the shifts in supply and demand)? Demand remains constant and supply increases Demand increases and supply increases Demand decreases and supply increases Demand decreases and supply decreases
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If the decrease in demand is greater than the increase in supply, equilibrium output will decrease. If the increase in supply is greater than the decrease in demand, equilibrium output will increase. Show more…
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