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-(Exhibit: Markets and Efficiency) in Panel (B) Demand Shifted from D1

Question 16

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-(Exhibit: Markets and Efficiency) In Panel (b) demand shifted from D<sub>1</sub> to D<sub>2</sub> reflecting a change in consumer preferences. Based upon that, which of the following statements is true? A) At the price of $.80, the quantity of apples demanded will now be greater than the quantity supplied. B) At the price of $.80, the quantity supplied of apples will now equal the quantity demanded. C) There is pressure for the price of apples to fall to $0.70 per pound. D) A shortage of apples will force the price up to the new price of $0.90.
-(Exhibit: Markets and Efficiency) In Panel (b) demand shifted from D1 to D2 reflecting a change in consumer preferences. Based upon that, which of the following statements is true?


A) At the price of $.80, the quantity of apples demanded will now be greater than the quantity supplied.
B) At the price of $.80, the quantity supplied of apples will now equal the quantity demanded.
C) There is pressure for the price of apples to fall to $0.70 per pound.
D) A shortage of apples will force the price up to the new price of $0.90.

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