Suppose a shortage for good X exists. Given this information, we know that
A. a government price floor should be imposed above the current price so that the market can work more effectively.
B. a government price ceiling should be imposed above the current price so that the market can work more effectively.
C. the price of good X will tend to rise toward the equilibrium level.
D. the price of good X will tend to fall toward the equilibrium level.
Answer: C
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