If the prevailing price of shirts is $10 and at this price demanders demand 100 shirts while suppliers are willing to supply 110 shirts,there is a(n)
A)shortage at the $10 price.
B)surplus at the $10 price.
C)equilibrium in this market.
D)shortage if price were to rise above $10.

Question

Quizplus · Accepted Answer

At the current price of $10, the quantity supplied (110) exceeds the quantity demanded (100), indicating a surplus. Therefore, there is a surplus at the $10 price. Option A and D are incorrect as they suggest a shortage in the market, which is not the case. Option C is incorrect because equilibrium occurs when the quantity demanded equals the quantity supplied, which is not the case in this scenario.

If the Prevailing Price of Shirts Is $10 and at This