-At a price of P₀ in the above figure, which of the following statements is FALSE?
A)Quantity demanded equals quantity supplied.
B)There is an equilibrium in the market.
C)P₀ is the market clearing price.
D)There is a surplus equal to Q₀.

Question

-At a price of P₀ in the above figure, which of the following statements is FALSE?
A)Quantity demanded equals quantity supplied. 
B)There is an equilibrium in the market. 
C)P₀ is the market clearing price. 
D)There is a surplus equal to Q₀.

Quizplus · Accepted Answer

A surplus occurs when quantity supplied exceeds quantity demanded, which contradicts the conditions of equilibrium where quantity demanded equals quantity supplied.

-At a Price of P₀ in the Above Figure, Which