When the current price is above the market-clearing level we would expect:
A) quantity demanded to exceed quantity supplied.
B) quantity supplied to exceed quantity demanded.
C) a shortage.
D) greater production to occur during the next period.

Question

Quizplus · Accepted Answer

When the current price is above the market-clearing level, it means the price is higher than where demand and supply would naturally meet. As a result, quantity supplied will exceed quantity demanded, leading to a surplus.

When the Current Price Is Above the Market-Clearing Level We