🎖️ Defence📈 Economics

Under normal downward sloping demand curve and fully elastic supply curve of a commodity, an exogenous decrease in deman…

Q1

Under normal downward sloping demand curve and fully elastic supply curve of a commodity, an exogenous decrease in demand would lead to

aIncrease in equilibrium price and quantity

bDecrease in equilibrium price and quantity

cDecrease in equilibrium quantity and no change in price

dIncrease in equilibrium price and no change in quantity

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