Assume that consumers' incomes and the number of sellers in the market for good A both decrease. Based upon this information, we can conclude, with…

CA Foundation · Business Economics · MTP · June 2024
Assume that consumers' incomes and the number of sellers in the market for good A both decrease. Based upon this information, we can conclude, with certainty, that the equilibrium:
(A) A. Price will increase.
(B) B. Price will decrease.
(C) C. Quantity will increase.
(D) D. Quantity will decrease.

Suggested Answer and Working Notes:

Correct Answer: Option (D)

D. Quantity will decrease.

Topics: Money Market

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