Multiple Choice
If the price of carrots is below the equilibrium price,the
A) quantity demanded of carrots exceeds the quantity supplied and a surplus exists.
B) quantity supplied of carrots exceeds the quantity demanded and a surplus exists.
C) quantity demanded of carrots exceeds the quantity supplied and a shortage exists.
D) quantity supplied of carrots exceeds the quantity demanded and a shortage exists.
E) quantity supplied of carrots equals the quantity demanded.
Correct Answer:
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