Macroeconomics 11th Edition by Stephen Slavin

Exercise 16

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 quantity supplied is greater than quantity demanded, _____.
a) price will fall to its equilibrium level
b) price will rise to its equilibrium level
c) price may rise, fall, or stay the same, depending on a variety of factors