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Suppose a Shortage for Good a Exists

Question 445

Multiple Choice

Suppose a shortage for good A exists. Given this information, we know that


A) the price of good A will tend to rise toward the equilibrium level.
B) the price of good A will tend to fall toward the equilibrium level.
C) a government price floor should be imposed above the current price so that the market can work more effectively.
D) a government price ceiling should be imposed above the current price so that the market can work more effectively.

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