Use the Following to Answer Question(s): Markets and Efficiency

question 175

Multiple Choice

Use the following to answer question(s) : Markets and Efficiency

-(Exhibit: Markets and Efficiency) In Panel (b) demand shifted from D₁ to D₂ reflecting a change in consumer preferences.Based upon that, which of the following statements is true?

• A) At the price of $.80, the quantity of apples demanded will now be greater than the quantity supplied.
• B) At the price of $.80, the quantity supplied of apples will now equal the quantity demanded.
• C) There is pressure for the price of apples to fall to $0.70 per pound.
• D) A shortage of apples will force the price up to the new price of $0.90.

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