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A Price at Which the Amount People Wish to Buy

Question 1

Multiple Choice

A price at which the amount people wish to buy exceeds the amount that people wish to produce (given upward-sloping supply curves) :


A) lies above the equilibrium, market clearing price.
B) lies below the market clearing price.
C) will induce a shift in the demand schedule to achieve equilibrium.
D) is impossible.
E) is none of the above.

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