Exhibit 3-16  Supply and Demand Curves for Chairs in Exhibit

Exhibit 3-16  Supply and demand curves for chairs In Exhibit 3-16, assume that the market price of chairs is $5 each. This price is:

A) an equilibrium price.
B) not an equilibrium price, since there is an excess supply at a price of $5.
C) not an equilibrium price, since there is an excess demand at a price of $5.
D) not an equilibrium price, since the rate at which chairs are being supplied is great than the rate at which they are being demanded.