If the price is above the equilibrium price in the market for grapefruit, total surplus:
A)will increase.
B)will decrease.
C)will not change.
D)may change, but we cannot determine the change without more information.

Question

Quizplus · Accepted Answer

When the price is above the equilibrium, there will be a surplus in the market, and some buyers who are willing to buy at a lower price than the current price won't be able to buy. This will decrease the total surplus in the market.

If the Price Is Above the Equilibrium Price in the Market