The more the current price exceeds the equilibrium price, the:
A) greater the resulting shortage will be.
B) smaller the resulting shortage will be.
C) greater the resulting surplus will be.
D) smaller the resulting surplus will be.

Question

Quizplus · Accepted Answer

When the current price is above the equilibrium price, it leads to a surplus because the quantity supplied exceeds the quantity demanded. The greater the difference, the larger the surplus.

The More the Current Price Exceeds the Equilibrium Price, The