If the market for peaches is in equilibrium at $2.99 per pound, a decrease in the supply of peaches will cause a surplus of peaches at that price.

Question

Quizplus · Accepted Answer

If the supply of peaches decreases, it means there will be less peaches available for sale. This will result in a shortage rather than a surplus at the equilibrium price of $2.99 per pound. The shortage will cause the price to increase as consumers bid against each other to purchase the limited peaches available.

If the Market for Peaches Is in Equilibrium at $2