When the market price of a good is above its equilibrium value,and all other determinants are unchanged:
A)A shortage will exist in the market.
B)The quantity demanded will exceed the quantity supplied.
C)Both the supply curve and the demand curve will shift to the right.
D)A surplus will exist in the market.

Question

Quizplus · Accepted Answer

When the market price of a good is above its equilibrium value, it means that the price is higher than what consumers are willing to pay and that producers are able to supply more than what is demanded. This results in a surplus of the good in the market. Therefore, the correct choice is D, and the other choices are incorrect.

When the Market Price of a Good Is Above Its