Suppose cupcakes are currently selling for $12 per dozen. The equilibrium price of cupcakes is $10 per dozen. What would we expect?
A) a shortage to exist and the market price of cupcakes to increase
B) a shortage to exist and the market price of cupcakes to decrease
C) a surplus to exist and the market price of cupcakes to increase
D) a surplus to exist and the market price of cupcakes to decrease
Correct Answer:
Verified
Q171: Suppose you wish to analyze the change
Q172: Figure 4-5 Q173: If a shortage exists in a market, Q174: What is step one in the three-step Q175: What happens when there is a surplus Q177: Which of the following is NOT one Q178: Figure 4-5 Q179: If a surplus exists in a market, Q180: Figure 4-5 Q181: Suppose that the incomes of buyers in Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents
