If a price support is maintained above the equilibrium price,the result will be a
A)Market price that is too low.
B)Market price equal to the equilibrium price.
C)Surplus of the product.
D)Shortage of the product.

Question

Quizplus · Accepted Answer

When a price support is maintained above the equilibrium price, it creates a surplus of the product. This is because the quantity supplied exceeds the quantity demanded at the higher price, leading to a situation where there are excess goods that cannot be sold. Therefore, choice C is the correct answer.

If a Price Support Is Maintained Above the Equilibrium Price,the