Exhibit 4-16

-If the market described in Exhibit 4-16 experiences a surplus of computers,then an economist would expect the:

Question

Exhibit 4-16
 
-If the market described in Exhibit 4-16 experiences a surplus of computers,then an economist would expect the:

Quizplus · Accepted Answer

A surplus in the market indicates that the quantity supplied exceeds the quantity demanded at the current price. To eliminate the surplus, the price would typically decrease, encouraging more consumers to buy and reducing the quantity supplied until equilibrium is reached.

Exhibit 4-16 -If the Market Described in Exhibit 4-16 Experiences a Surplus