Figure 10-1

-If the price level in Figure 10-1 were 120,
A)there would be excess goods on the market.
B)firms would have to raise their prices.
C)inventories would be disappearing.
D)aggregate quantity demanded would exceed aggregate quantity supplied.

Question

Figure 10-1
​ 
-If the price level in Figure 10-1 were 120,
A)there would be excess goods on the market. 
B)firms would have to raise their prices. 
C)inventories would be disappearing. 
D)aggregate quantity demanded would exceed aggregate quantity supplied.

Quizplus · Accepted Answer

When the price level is above the equilibrium, it results in excess goods on the market because the quantity supplied exceeds the quantity demanded.

Figure 10-1 ​

Figure 10-1