Business, 24.02.2020 21:02 iliketurtures
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." a. A decrease in demand from D1 to D2 results in- excess supply.
b. This causes the price to- fall
c. This change in price results in in quantity demanded along the D2 demand curve.- an increase
d. This change in price results in in quantity supplied.- a decrease
e. The new equilibrium has a and a when compared to the original equilibrium. -Lower price, lower quanity
f. Does this refute the law of demand: . No
g. Why: Because there was a change in demand
Answers: 3
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Critically evaluate: "In comparing the two equilibrium positions in the diagram below, I note that a...
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