The Figure Given Below Shows the Demand Curves [D₁ and

The figure given below shows the demand curves [D₁ and D₂] and the supply curve [S₁] of capital. Figure 16.1 In Figure 16.1, if the price set in the market is P₃ when the demand curve is D₁, then:

A) the market will be in equilibrium.
B) there will be an excess demand for capital of the amount Q₄ - Q₁.
C) there will be a shortage of capital in the market by the amount Q₄ - Q₂.
D) there will be a surplus of capital in the market by the amount Q₃ - Q₁.
E) there will be a surplus of capital in the market by the amount Q₃ - Q₂.

Correct Answer:

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