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Suppose Donuts Are Currently Selling for $10 Per Dozen

Question 270

Multiple Choice

Suppose donuts are currently selling for $10 per dozen.The equilibrium price of donuts is $12 per dozen.What would we expect


A) a shortage to exist and the market price of donuts to increase
B) a shortage to exist and the market price of donuts to decrease
C) a surplus to exist and the market price of donuts to increase
D) a surplus to exist and the market price of donuts to decrease

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