When the market price is above equilibrium then ____ and when the market price is below equilibrium, then ____.
A)quantity demanded is greater than quantity supplied; quantity supplied is greater than quantity demanded.
B)quantity supplied is greater than quantity demanded; quantity supplied is greater than quantity demanded.
C)quantity supplied is greater than quantity demanded; quantity demanded is greater than quantity supplied
D)the market is in equilibrium; the market is in equilibrium.

Question

Quizplus · Accepted Answer

When the market price is above equilibrium, quantity supplied is greater than quantity demanded. This is because at a higher price, suppliers are willing to supply more of the good, but consumers are less willing to demand as much. Conversely, when the market price is below equilibrium, quantity demanded is greater than quantity supplied. This is because at a lower price, consumers are willing to demand more of the good, but suppliers are less willing to supply as much. Only choice C accurately describes this relationship.

When the Market Price Is Above Equilibrium Then ____ and When