If a producer incorrectly sets the price of its product too high:
A) a shortage (excess demand) will result.
B) a surplus (excess supply) will result.
C) equilibrium will result.
D) the producer will soon shut down.

Question

Quizplus · Accepted Answer

Setting the price too high will lead to a surplus, as the quantity supplied will exceed the quantity demanded at that price point.

If a Producer Incorrectly Sets the Price of Its Product