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Assume That the Equilibrium Price for a Good Is $5

Question 158

Multiple Choice

Assume that the equilibrium price for a good is $5. If the market price is $10, a:


A) shortage causes the price to decline toward $5.
B) surplus causes the price to rise above $10.
C) shortage causes the price to rise above $10.
D) surplus causes the price to decline toward $5.

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