If the quantity demanded of milk is 55,000 and the quantity supplied of milk is 80,000, then:
A) there is an excess supply of 25,000 units of milk.
B) the price of milk will tend to rise to clear the market.
C) consumers get the milk they want so market equilibrium exists.
D) there is an excess demand of 25,000 units of milk.

Question

Quizplus · Accepted Answer

When the quantity supplied (80,000) exceeds the quantity demanded (55,000), there is an excess supply of 25,000 units, indicating a surplus of milk in the market.

If the Quantity Demanded of Milk Is 55,000 and the Quantity