"A decrease in supply will lead to an increase in the price, which decreases demand, thus lowering price. Thus, a decrease in supply has no effect on the price of a good." Evaluate this statement.
"A decrease in supply will lead to an increase in the price, which decreases demand, thus lowering price. Thus, a decrease in supply has no effect on the price of a good." Evaluate this statement.
Chapter3: Market Demand And Supply
Section: Chapter Questions
Problem 19SQ
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"A decrease in supply will lead to an increase in the price , which decreases demand , thus lowering price. Thus, a decrease in supply has no effect on the price of a good." Evaluate this statement.
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