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If a Price Above Equilibrium Is Imposed on a Market

Question 40

Multiple Choice

If a price above equilibrium is imposed on a market, welfare will increase when the price control is lifted. If a price control is below equilibrium and then is repealed and allowed to rise to equilibrium, welfare in the system will increase.


A) The first statement is true and the second is false.
B) The first statement is false and the second statement is true.
C) Both statements are false.
D) Both statements are true.

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