5.Suppose a simple market can be represented by the demand equation QD = 40 - 2P and the supply equation QS = 5 + 3P. For this market, what will happen if the market price is initially $5?
  1. Price will rise, quantity demanded will fall.
  2. Demand will increase.
  3. Supply will decrease.
  4. Price will fall, quantity demanded will fall.
  5. Price will fall, quantity supplied will rise.

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