6. How does decrease in the income affect the equilibrium price of a p – InterviewSolution

1.	6. How does decrease in the income affect the equilibrium price of a product?
Answer» Adecrease in income willcause adecreasein demand, shifting the entire demand curve to the left. Thiswillcause bothequilibriumprice andequilibriumquantity todecrease. ... Since both shifts result in adecreasein quantity,equilibriumquantitywill decrease.

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