Refer to the diagram given below.
The above diagram shows the demand for and the supply of Product X.Assume that the market for Product X is competitive.If the supply curve is S1 and the demand curve is D0, then:
A) a shortage would occur at any price above 0G.
B) there is a surplus of AC units at OF.
C) a surplus of GH units would occur.
D) there is a shortage of AC units at OF.
Correct Answer:
Verified
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