Macroeconomics 11th Edition by Stephen Slavin

Exercise 18

Before you get started, you'll find it's much easier to answer many of these questions by first sketching a graph of a supply and demand curve. In fact, that graph will help you answer the first four questions.
Circle the letter that corresponds to the best answer.
When market price is above equilibrium price, _____.
a) market price will rise
b) equilibrium price will rise
c) market price will fall
d) equilibrium price will fall