Reference: Ref 4-4 (Table: Equilibrium Adjustment) Refer to the Table

question 102

Multiple Choice

Reference: Ref 4-4 (Table: Equilibrium Adjustment) Refer to the table. If the price in the free market is $8, then a:

• A) surplus of 25 units would exist and price would tend to fall.
• B) surplus of 25 units would exist and price would tend to rise.
• C) shortage of 25 units would exist and price would tend to rise.
• D) shortage of 25 units would exist and price would tend to fall.