Suppose That the Equilibrium Price in the Market Is $10

question 48

Multiple Choice

Suppose that the equilibrium price in the market is $10. If the current market price is $7.50:

• A) the equilibrium price will fall to $7.50.
• B) competition among buyers will increase the current price.
• C) the current price will fall below $7.50 as sellers compete for market share.
• D) There is not enough information provided to answer the question.