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Derrick Owns and Operates a Bakery

Question 56

Multiple Choice

Derrick owns and operates a bakery.Every Saturday he bakes a batch of fresh kolaches,and every Saturday he sells all the kolaches and has to turn some customers away.Which of the following statements is correct?


A) At the current price,quantity demanded exceeds quantity supplied.
B) The current price is higher than the equilibrium price.
C) If Derrick lowered the price of kolaches,the shortage would increase.
D) both a and c
E) all of the above

Correct Answer:

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