PRICE $4 Supply Demand 0 10 QUANTITY (units) In the market shown in the graph above, at a price of $5, there will be (A) a surplus and the price will eventually fall B a surplus generating a decrease in demand a shortage and the price will eventually rise D a shortage generating an increase in supply ய (E) an increase in supply and a decrease in demand

Microeconomics
13th Edition
ISBN:9781337617406
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter3: Supply And Demand: Theory
Section3.3: The Market: Putting Supply And Demand Together
Problem 3ST
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PRICE
$4
Supply
Demand
0
10
QUANTITY (units)
In the market shown in the graph above, at a price of $5, there will be
(A)
a surplus and the price will eventually fall
B
a surplus generating a decrease in demand
a shortage and the price will eventually rise
D
a shortage generating an increase in supply
ய
(E)
an increase in supply and a decrease in demand
Transcribed Image Text:PRICE $4 Supply Demand 0 10 QUANTITY (units) In the market shown in the graph above, at a price of $5, there will be (A) a surplus and the price will eventually fall B a surplus generating a decrease in demand a shortage and the price will eventually rise D a shortage generating an increase in supply ய (E) an increase in supply and a decrease in demand
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