The Above Figure Shows the Market for T-Shirts

question 88

Multiple Choice

The above figure shows the market for t-shirts. If the price of t-shirts is $12, then

• A) there is a shortage and the price of t-shirts will fall.
• B) there is a surplus and the price of t-shirts will rise.
• C) there is a surplus and the price of t-shirts will fall.
• D) there is a shortage and the price of t-shirts will rise.
• E) the market is in equilibrium.

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Definitions:

Owner's Capital

The total equity or net worth owned by the proprietor of a company, reflecting the amount invested plus any retained earnings.