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24 February, 13:51

quality diamonds decreases AND the supply of gemminusquality diamonds decreases, what can be said about equilibrium price and quantity in this market?

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  1. 24 February, 14:12
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    The change in equilibrium price will be uncertain, but quantity will fall.

    Explanation:

    If the supply of a particular good to the market decreases, the quantity of that particular good in the market will fall, also the equilibrium price (the price where demand equals to supply) will be not be certain.
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