If prices are held above the equilibrium price,________.
A) social surplus will be maximized
B) all firms will incur losses
C) there will be a surplus in the market
D) there will be a shortage in the market

Question

Quizplus · Accepted Answer

When prices are held above the equilibrium price, the quantity supplied exceeds the quantity demanded, leading to a surplus in the market. This is because producers are willing to supply more at the higher price, but consumers are not willing to buy as much at that price.

If Prices Are Held Above the Equilibrium Price,________