Imagine a Free Market in Which at a Price of $10

question 18

Multiple Choice

Imagine a free market in which at a price of $10, quantity supplied is 50 units and quantity demanded is 40 units. Equilibrium price in this market:

• A) is equal to $10.
• B) is less than $10.
• C) is greater than $10.
• D) differs from $10 in an indeterminate direction.

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