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Economists Generally Assume That the Actual Market Price of an Item

Question 60

Multiple Choice

Economists generally assume that the actual market price of an item approximates the equilibrium price.They make this assumption because


A) their information is too limited to permit a more accurate guess.
B) as soon as the actual price shifts, the equilibrium price shifts.
C) forces in the market tend to push actual price toward equilibrium.
D) very few products ever vary in price from the equilibrium.
E) actual prices are set by the government.

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