The effect of an increase in demand for a commodity accompanied by a decrease in…

The effect of an increase in demand for a commodity accompanied by a decrease in supply will be to?
  • A.
    raise the price of the commodity and affect the quantity in an indeterminate way
  • B.
    decrease the equilibrium quantity and affect the price in an intermediate way
  • C.
    raise its price as well as the equilibrium quantity
  • D.
    lower it price while affecting the equilibrium quantity in an interminate way
Correct Answer: Option C
Explanation
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