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Suppose that the equilibrium price in the market is $10. If the current market price is $7.50:
A. the equilibrium price will fall to $7.50.
B. competition among buyers will increase the current price.
C. the current price will fall below $7.50 as sellers compete for market share.
D. There is not enough information provided to answer the question.
Use the principles of supply and demand to address a predetermined goal (set by the student) in the gasoline market. Be clear on what the current market indicates and why and what your future goal is.
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