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Given linear demand curves, if demand increases and supply decreases, then __________. the effect on the equilibrium price will be ambiguous but equilibrium quantity will

Given linear demand curves, if demand increases and supply decreases, then __________.

  • the effect on the equilibrium price will be ambiguous but equilibrium quantity will increase
  • the equilibrium price will increase but the effect on the equilibrium quantity will be ambiguous
  • the effect on the equilibrium price will be ambiguous but equilibrium quantity will decrease
  • the equilibrium price will decrease but the effect on the equilibrium quantity will be ambiguous

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