When the market price of a good is above its equilibrium value:
A)a shortage will exist in the market.
B)the quantity demanded will exceed the quantity supplied.
C)both the supply curve and the demand curve will shift to the right.
D)a surplus will exist in the market.

Question

Quizplus · Accepted Answer

When the market price of a good is above its equilibrium value, there will be a surplus in the market. This is because the quantity supplied will exceed the quantity demanded at the higher price, leading to an excess of unsold goods.

When the Market Price of a Good Is Above Its