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The Initial Supply and Demand Curves for a Good Are

Question 280

Multiple Choice

The initial supply and demand curves for a good are illustrated in the above figure. If there is a rise in the price of a factor of production used to produce the good, then the new equilibrium price


A) is $6.
B) is more than $6.
C) is less than $6.
D) could be less than, equal to, or more than $6.

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