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Instructions: Enter your responses as whole numbers.
(a) What is the equilibrium price? $
(b) If a minimum price (price floor) of $8 is set,
(i) What kind of disequilibrium situation results? (Click to select) shortage surplus
(ii) How large is it? units
(c) If a maximum price (price ceiling) of $1 is set,
Price ($)
8
7
6
5
4
3
2
1
Quantity demanded
9
Quantity supplied
10
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Explain is low stable inflation also deflation better for the economy.
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