Exhibit 3-17 Refer to Exhibit 3-17. At a price of $20, the quantity demanded of good X is ____________ than the quantity supplied of good X, and economists would use this information to predict that the price of good X would soon ______________. This would push the price __________ the equilibrium price.

Question

Exhibit 3-17  Refer to Exhibit 3-17.  At a price of $20, the quantity demanded of good X is ____________ than the quantity supplied of good X, and economists would use this information to predict that the price of good X would soon ______________.  This would push the price __________ the equilibrium price.

Quizplus · Accepted Answer

At a price of $20, the quantity demanded of good X is less than the quantity supplied of good X, which creates a surplus in the market. This would lead to a fall in the price of good X as producers would try to sell their excess supply, pushing the price towards the equilibrium price. Therefore, the best choice is C.