Refer to Figure 3-6. The figure above represents the market for canvas tote bags. Compare the conditions in the market when the price is $50 and when the price is $35. Which of the following describes how the market differs at these prices?
A) The difference between quantity supplied and quantity demanded is greater at $50 than at $35.
B) At each price there is a surplus; firms will lower the equilibrium price in order to eliminate the surplus.
C) At each price the supply of tote bags exceeds that demand for tote bags.
D) At each price there is a surplus; the surplus is greater at $35 than at $50.
A
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