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If the Price of a Good Is Below the Equilibrium

Question 175

Multiple Choice

If the price of a good is below the equilibrium price,


A) suppliers will find inventories building; they will cut output and raise prices.
B) suppliers will find inventories being depleted. They will increase production and raise prices.
C) the demand curve will shift down until an equilibrium is established at the existing price.
D) the supply curve will shift up until an equilibrium is established at the existing price.

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