In Exhibit 3-16, assume that the market price of chairs is $5 each. This price is:?
A. ?an equilibrium price.
B. not an equilibrium price, since there is an excess supply at a price of $5.
C. ?not an equilibrium price, since there is an excess demand at a price of $5.
D. ?not an equilibrium price, since the rate at which chairs are being supplied is great than the rate at which they are being demanded.
Answer: C
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