A surplus of a product will arise when price is:?

Question

A. above equilibrium w/ the result that quantity demanded exceeds quantity suppled
B. above equilibrium w/ the result that quantity supplied exceeds quantity demanded
C. below equilibrium w/ the result that quantity demanded exceeds quantity supplied
D. below equilibrium w/ the result that quantity supplied exceeds quantity demanded.

Answer 1

There will be a surplus of product when the price is too high. Think about the questions. You go to buy something but the price is too high so you pass. Surplus is up because you're not buying, So quantity supplied is greater than quantity demand. Anytime demand is less than the amount supplied, you get that surplus. So If equilbrium = quantity supplied equals quantity demanded. You raise the price and demand goes down and you get a surplus. Please tell me you figured out B.

Answer 2

B. above equilibrium (or when a price ceiling is enacted) with the result that quantity supplied exceeds quantity demanded

Answer 3

Choice B. Draw the supply/demand X graph. It ALWAYS looks like an X with the intersection being the equilibrium price.

Looks like I'm doing your AP Economics homework.

Answer 4

Black markets upward push up because of the government regulation. So the respond is merely B. A isn't superb because of the fact while government do away with the fee floor, the industry will circulate freely to sparkling up the excess. C isn't superb because of the fact while fee is above equilibrium, it is going to likely be a surplus which will tension the fee to circulate down on the call for and furnish curve.And D isn't superb because of the fact an analogous reason as C.

Answer 5

definitely it's B