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Suppose a Market Is in Equilibrium and Then a Price

Question 16

Multiple Choice

Suppose a market is in equilibrium and then a price ceiling is established below the equilibrium price.Which of the following best describes what will happen in this market?  


A)  Quantity demanded will decrease. 
B)  A surplus will develop. 
C)  A shortage will develop. 
D)  The market will remain in equilibrium.

Correct Answer:

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