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When Market Price Is Below Equilibrium Price

Question 105

Multiple Choice

When market price is below equilibrium price


A) a shortage is generated.
B) a surplus is generated.
C) quantity demanded is greater than quantity supplied.
D) then both a shortage is generated and quantity demanded is greater than quantity supplied, but a surplus is not generated.
E) then both a surplus is generated and quantity demanded is greater than quantity supplied, but a shortage is not generated.

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