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Do Questions 1 & 6 on page 92 of chapter 3. Question 1: What conditions must exist in order for a market to function competitively? Is it easy to create these conditions? Question 6: Consider Figure 3-11 and do the following: a. Label both axes properly. b. Label the demand curve and the supply curve. c. Label the equilibrium price. d. Label the equilibrium quantity. e. What does one call the distance CD? Label it. f. What does one call the distance AB? Label it. g. Why is the equilibrium price the price that tends to be created? (ASSIGMENT 3)
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