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Suppose a Market Begins in Equilibrium

Question 244

Multiple Choice

Suppose a market begins in equilibrium. If supply increases, then at the original equilibrium price the quantity demanded is


A) is less than the quantity supplied and a shortage results.
B) exceeds the quantity supplied and a shortage results.
C) exceeds the quantity supplied and a surplus results.
D) is less than the quantity supplied and a surplus results.

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