The Following Question Are Based on the Following Graph Showing

question 2

Multiple Choice

The following question are based on the following graph showing the market for corn:

-If farmers currently produce 800 bushels

• A) the actual price is $2.
• B) the market is in equilibrium.
• C) the actual price is below the equilibrium price and will tend to rise.
• D) only increases in demand would encourage the supply to rise above 800 units.
• E) the market exhibits a surplus.

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