ECONOMICS
ECONOMIC SYSTEMS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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When the price is above the equilibrium price, fewer people would be willing to buy.
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true
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false
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Either A or B
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None of the above
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Explanation:
Detailed explanation-1: -If the price of a good is above equilibrium, this means that the quantity of the good supplied exceeds the quantity of the good demanded. There is a surplus of the good on the market.
Detailed explanation-2: -True, when equilibrium price of a good is less than its market price then there will be competition among the sellers. At a price lower than market price, there will be more supply.
Detailed explanation-3: -The answer is d). In a market equilibrium, the quantity demanded is equal to the quantity supplied, hence there is no excess demand or excess supply.
There is 1 question to complete.