Exhibit 3-16 Supply and Demand Curves for Chairs

Exhibit 3-16 Supply and demand curves for chairs

-In Exhibit 3-16,assume that the market price of chairs is $15 each.This price is:

A) an equilibrium price.
B) not an equilibrium price, since there is an excess demand at a price of $10.
C) an equilibrium price, since suppliers can store inventories in their warehouses.
D) not an equilibrium price, since the rate at which chairs are being supplied is greater than the rate at which they are being demanded.