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Answer the Following Questions About a Market

Question 153

Essay

Answer the following questions about a market:
a.If the price is above the equilibrium price, would there be a shortage or a surplus?
b.What will happen if the price is below the equilibrium price?
c.During a shortage, how does the market respond until it once again reaches equilibrium?

Correct Answer:

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a.If the price is above the equilibrium ...

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