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Question
Refer to the accompanying figure, which shows both short-run and long-run demand and supply curves. If there is a $x binding price floor imposed on a pharmaceutical drug, what will be the amount of the disequilibrium in the short run?
a. There will be a surplus of 1,500,000 units.
b. There will be a surplus of 800,000 units.
c. There will not be a surplus; there will be a shortage.
d. There will be a surplus of 2,000,000 units.
e. There will be a surplus of 500,000 units.
Answer
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