Suppose the demand curve has the usual downward slope while the supply curve is horizontal. This would imply that:
A) Market prices would tend to stay above the predicted equilibrium price since the magnitude of consumer surplus is larger than that of producer surplus.
B) Market prices would tend to stay above the predicted equilibrium price since the magnitude of consumer surplus is smaller than that of producer surplus.
C) Market prices would tend to stay below the predicted equilibrium price since the magnitude of consumer surplus is larger than that of producer surplus.
D) Market prices would converge smoothly to the predicted equilibrium price since the magnitude of consumer surplus is approximately equal to that of producer surplus.

Question

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The Answer of Suppose the demand curve has the usual downward slope while the supply curve is horizontal. This would imply that:
A) Market prices would tend to stay above the predicted equilibrium price since the magnitude of consumer surplus is larger than that of producer surplus.
B) Market prices would tend to stay above the predicted equilibrium price since the magnitude of consumer surplus is smaller than that of producer surplus.
C) Market prices would tend to stay below the predicted equilibrium price since the magnitude of consumer surplus is larger than that of producer surplus.
D) Market prices would converge smoothly to the predicted equilibrium price since the magnitude of consumer surplus is approximately equal to that of producer surplus.

Suppose the Demand Curve Has the Usual Downward Slope While