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Price of book S $30 0 1,000 Quantity of books The figure above shows the supply and demand for books. If the price is below t

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Ans. Decreases; decreases

When the price is below the equilibrium price, there will be a shortage in the market. Thus, the firm will not be able to supply the amount demanded in the market and hence its producer surplus will decrease. Since there is disequilibrium in the market, the total surplus in the market will also decrease.

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