Market for a good is an equilibrium. There is simultaneous decrease both in
demand and supply of the good. Explain its effects on market price.
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As the decrease in demand is equal to the decrease in supply, the price remains the same and the quantity will decrease at the new equilibrium point. When the demand decreases, the demand curve will shift to D2D2 and the decrease in supply will shift the supply curve to S2S2.
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