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Unformatted text preview: c. Describe the situation at a price of $2. What will occur? Price $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 $7.00 $8.00 $9.00 $10.00 Quantity Demanded 500 400 350 320 300 275 260 230 200 150 Quantity Suppplied 100 120 150 200 300 410 500 650 800 975 We observe that at price of $2.00, quantity demand is greater than quantity supplied. This is a situation The price will be below the equilibrium price. In such case, sellers will raise the price of the good market reaches equilibrium. f $2.00, quantity demanded pplied. This is a situation of shortage. e equilibrium price. aise the price of the good till the...
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This note was uploaded on 08/04/2011 for the course ECN 601 taught by Professor Professor during the Spring '10 term at Grand Canyon.

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