-Exhibit N-3 Depicts a Market Showing the Demand Curve for a Good

Multiple Choice

-Exhibit N-3 depicts a market showing the demand curve for a good and two supply curves, one reflecting the industry's private costs; the other reflecting the costs of resources to society producing the good. It is clear from this representation of the market that the market would choose a price which is too ___________ and an output which istoo __________.

A) high; low
B) low; low
C) high, high
D) low; high
E) valuable; constant