If the equilibrium price for a half gallon of organic milk is $4 and the current price for a half gallon of milk is $5.25, all of the following are true except which one?

Question

Quizplus · Accepted Answer

If the current price is higher than the equilibrium price, there will be a surplus in the market, which means that the quantity supplied exceeds the quantity demanded. This also means that there is no shortage in the market. However, the market forces will cause the current price to fall to the equilibrium price, which is $4.

If the Equilibrium Price for a Half Gallon of Organic