Asked by
matthew phillips
on Oct 13, 2024
Verified
If market price is above equilibrium price,
A) quantity demanded is greater than quantity supplied.
B) quantity supplied is greater than quantity demanded.
C) quantity supplied is equal to quantity demanded.
Equilibrium Price
is the price at which the quantity of a good or service demanded by consumers equals the quantity supplied by producers, resulting in market balance.
Quantity Supplied
Suppliers' readiness and capability to sell a certain amount of goods or services at a specified price.
Quantity Demanded
The complete quantity of a specific product or service that consumers can and are willing to buy at a certain price threshold.
- Recognize conditions of excess and scarcity in the market and comprehend their effects on pricing.
Verified Answer
GP
Learning Objectives
- Recognize conditions of excess and scarcity in the market and comprehend their effects on pricing.