If a computer hardware company introduces a new ultra-thin laptop and finds that orders far exceed the number of units that are being produced,
A) there is an excess supply and price can be expected to decrease.
B) there is an excess supply and price can be expected to increase.
C) there is an excess demand and price can be expected to decrease.
D) there is an excess demand and price can be expected to increase.

Question

Quizplus · Accepted Answer

When orders exceed the number of units produced, it indicates excess demand. In such scenarios, prices typically increase due to the higher demand relative to supply.

If a Computer Hardware Company Introduces a New Ultra-Thin Laptop