Asked by
Shirley Scholten
on Oct 13, 2024
Verified
If market price is equal to equilibrium price
A) there is a surplus.
B) there is a shortage.
C) there is neither a surplus nor a shortage.
Equilibrium Price
The price at which the quantity of a good or service demanded equals the quantity supplied, resulting in market balance.
Surplus
An excess of production or supply over demand, often leading to a decrease in prices.
Shortage
A situation where the demand for a product exceeds the available supply, often leading to higher prices.
- Gain insight into the mechanism of market equilibrium, orchestrated by the balancing act of supply and demand.
- Identify instances of supply surplus and shortage within the market and appreciate their implications for pricing strategies.
Verified Answer
MH
Learning Objectives
- Gain insight into the mechanism of market equilibrium, orchestrated by the balancing act of supply and demand.
- Identify instances of supply surplus and shortage within the market and appreciate their implications for pricing strategies.