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Assume that consumer's income and the number of sellers in the market for good X both falls. Based on this information, we can conclude with certaintty that the equilibrium

A. Price will decrease

B. Price will increase

C. Quantity will decrease

D. Quantity will increase

Answer: Option C

Solution(By Examveda Team)

We can conclude with certaintty that the equilibrium quantity will decrease.

This Question Belongs to Commerce >> Economics

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Comments ( 4 )

  1. #Elvis The
    #Elvis The :
    3 years ago

    The price may not necessarily change but quantity will do
    And if quantity is reduced then price will go up

  2. DBIT SPU
    DBIT SPU :
    3 years ago

    how?

  3. Chukwunyere Oluebube
    Chukwunyere Oluebube :
    4 years ago

    How

  4. Ritika Maurya
    Ritika Maurya :
    6 years ago

    how

Related Questions on Economics

Which among the following statement is INCORRECT?

A. On a linear demand curve, all the five forms of elasticity can be depicted

B. If two demand curves are linear and intersecting each other, then, coefficient of elasticity would be same on different demand curves at the point of intersection.

C. If two demand curves are linear and parallel to each other, then, at a particular price, the coefficient of elasticity would be different on different demand curves.

D. The price elasticity of demand is expressed in terms of relaive not absolute changes in Price and Quantity demanded.