If the price of a good is above the equilibrium price, then __________.
There is a surplus in the market and the price will fall. Above the equilibrium price, quantity supplied exceeds quantity demanded, putting downward pressure on the price.
Choose your answer
If the price of a good is above the equilibrium price, then __________.
Answer and explanation
Correct answer A
There is a surplus in the market and the price will fall. Above the equilibrium price, quantity supplied exceeds quantity demanded, putting downward pressure on the price.
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Telangana SET (TG SET)