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Equilibrium price in the peach market has decreased, but equilibrium quantity has stayed the same. Which of the following scenarios might explain this result?I. An increase in peach supply and a perfectly elastic peach demandII. An increase in peach supply and a perfectly inelastic peach demandIII. An increase in peach demand and a decrease in peach supply

User Stf Kolev
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Answer: (I.) An increase in peach supply and a perfectly elastic peach demand.

Step-by-step explanation:

Equilibrium price in the peach market has decreased, but equilibrium quantity has stayed the same. The following scenario is possible only when there is an increase in peach supply and a perfectly elastic peach demand.

This can be further explained using a graph:

Equilibrium price in the peach market has decreased, but equilibrium quantity has-example-1
User Sophie Crommelinck
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