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"What may happen if the line ""Artificial Price"" were above the intersection of the supply and demand lines?

A) Artificial monopoly
B) Natural monopoly
C) Shortage
D) Surplus"

"What may happen if the line ""Artificial Price"" were above-example-1
User Tim Destan
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2 Answers

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Answer:

D) Surplus

Step-by-step explanation:

In this graph, we see that the line "artificial price" is below the meeting between the supply and demand curves, which represents the equilibrium price. In this case, there is a shortage because supply is less than demand. The price below equilibrium is a stimulus to the consumer, but it is a discouragement to the offerer. However, if this line were located above the equilibrium price, there would be an surplus because there would be more supply than demand in the market. Price above equilibrium is a stimulus to the offeror and a discouragement to the buyer.

User Vesii
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1 vote
The right answer is D) Surplus.
User Ricardo Peres
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