Suppose the equilibrium price of good Y is $5 and the equilibrium quantity is 150 units.Supply in this market is upward sloping.If the price of good Y is $12:
A)the quantity demanded will be greater than 150 units.
B)the quantity supplied will be less than 150 units.
C)there will be an excess demand for good Y.
D)there will be an excess supply of good Y.

Question

Quizplus · Accepted Answer

Since the equilibrium price of good Y is $5 and the current market price is $12, it is above the equilibrium price. Hence, the quantity supplied will exceed the quantity demanded, leading to an excess supply of good Y. Therefore, option D is the correct answer. Options A, B, and C are incorrect as they imply a shortage of good Y, which is not the case when the price is above equilibrium.

Suppose the Equilibrium Price of Good Y Is $5 and the Equilibrium