Which will lead to an offsetting decrease in price

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Suppose a friend of yours offered the following argument: " A rightward shift in Demand will cause an increase in price. This increase in price will cause an increase (i.e. rightward shift) in supply, which will lead to an offsetting decrease in price. Therefore, it is impossible to tell what effect an increase in demand will have on price!" Is this a sound argument? Discuss.

Reference no: EM132282129

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