If the supply and demand curves for a Chinese lantern intersect at a price of $25....

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If the supply and demand curves for a Chinese lantern intersect at a price of $25. To attract more visitors, the seller sets

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Answer 1

Answer #1

The right answer is option B, because the price is set above the equilibrium price that means supply will be greater than the demand of the Chinese lantern. Therefore, it will create the surplus in the market as the supply is greater than the demand.

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Answer 2

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If the supply and demand curves for a Chinese lantern intersect at a price of $25....

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If the supply and demand curves intersect at a price of $47, then any price above...

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If the supply and demand curves for a Chinese lantern intersect at a price of $25....

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