Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
Transcribed Image Text:x³
B
endowment
u B
1
Which one of the following statements is true about the prices (P₁, P2)?
Select one:
O a. These prices result in an excess supply of both goods.
O b.
These prices result in an excess supply of Good 1.
O c.
These prices are part of a competitive equilibrium.
O d.
These prices result in an excess supply of Good 2.
B
x2
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