ECONOMICS
DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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consumers will compete for the deficit and prices will rise
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producers will place more goods on the market and prices will increase
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demand will contract and price adjust upward to equilibrium
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new firms will enter the market
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Detailed explanation-1: -Key Takeaways. The quantity supplied of a good or service exceeding the quantity demanded is called a surplus. If the quantity demanded exceeds the quantity supplied, a shortage exists. The equilibrium price is the price in which the quantity supplied equals the quantity demanded.
Detailed explanation-2: -If demand exceeds supply, prices will rise. The law of supply and demand is based on two other economic laws: the law of supply and the law of demand. The law of supply says that when prices rise, companies see more profit potential and increase the supply of goods and services.
Detailed explanation-3: -If the price is above the equilibrium level, then the quantity supplied will exceed the quantity demanded. Excess supply or a surplus will exist. In either case, economic pressures will push the price toward the equilibrium level.
Detailed explanation-4: -In a market, the surplus of any product or service will occur when its actual price in the market is above the equilibrium price level. In other words, a surplus occurs when the quantity supplied of a product/service is greater than the quantity demanded of a product/service in the market.