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Use the Figure Below to Answer the Following Questions

Question 18

Multiple Choice

Use the figure below to answer the following questions.
Use the figure below to answer the following questions. Figure 3.4.1 -At price P₁ in Figure 3.4.1 A) there is a surplus in the amount of Q₄ - Q₂. B) there is a shortage in the amount of Q₄ - Q₂. C) there is a tendency for the price to fall. D) the equilibrium quantity is Q₂. E) the equilibrium quantity is Q₄.
Figure 3.4.1
-At price P₁ in Figure 3.4.1


A) there is a surplus in the amount of Q₄ - Q₂.
B) there is a shortage in the amount of Q₄ - Q₂.
C) there is a tendency for the price to fall.
D) the equilibrium quantity is Q₂.
E) the equilibrium quantity is Q₄.

Correct Answer:

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