Asked by
Mitch Alderink
on Oct 13, 2024
Verified
When market price is above equilibrium price
A) a shortage is generated.
B) market price will rise.
C) quantity supplied is greater than quantity demanded.
D) None of these choices are correct.
Equilibrium Price
Equilibrium Price is the market price at which the quantity of goods supplied equals the quantity of goods demanded.
Shortage
A scenario in which the need for a product or service surpasses the amount available at a particular price.
Quantity Supplied
The amount of a good or service that producers are willing and able to sell at a given price over a specified period of time.
- Identify the scenarios under which the market experiences surpluses and shortages.
- Distinguish between the concepts of excess demand and excess supply.
Verified Answer
HG
Learning Objectives
- Identify the scenarios under which the market experiences surpluses and shortages.
- Distinguish between the concepts of excess demand and excess supply.