A-LevelEconomicsThe price system and the microeconomy9708/12 · Oct/Nov 2009 · Q41 Mark
A change in market conditions causes a reduction in supply. This results in a higher price for the product, which has a downward-sloping demand curve. What must be the outcome of this higher price?
Aan increase in the factors employed in the industry
Ban increase in producer's revenue
Creduction in the quantity demanded
Dreduction in the demand for substitutes
✓ Correct answer
C: reduction in the quantity demanded
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