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?
- Price will rise, quantity demanded will fall.
- Demand will increase.
- Supply will decrease.
- Price will fall, quantity demanded will fall.
- Price will fall, quantity supplied will rise.
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