Please answer: As long as the actual market price exceeds the equilibrium market
ID: 1134864 • Letter: P
Question
Please answer: As long as the actual market price exceeds the equilibrium market price, there will be:
Answers:
A.
upward pressure on the market price.
B.
no purchases made.
C.
downward pressure on the market price.
D.
Both A and C are correct.
E.
Both B and C are correct.
Please answer: As long as the actual market price exceeds the equilibrium market price, there will be:
Answers:
A.
upward pressure on the market price.
B.
no purchases made.
C.
downward pressure on the market price.
D.
Both A and C are correct.
E.
Both B and C are correct.
Explanation / Answer
Solution: downward pressure on the market price
Explanation: The market is in equilibrium when the supply and demand curves intersect. If the market price is above the equilibrium price, quantity supplied exceeds the quantity demanded it creates a surplus and thus the market price will fall.