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When the Actual Price in a Market Is Above the Equilibrium

Question 21

Multiple Choice

When the actual price in a market is above the equilibrium price we would expect:


A) this higher price to be the new equilibrium.
B) a shortage of the good or service.
C) a surplus of the good or service.
D) an excess demand or excess supply depending upon the extent of the difference between actual and equilibrium price.

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