When the market price of a good is above its equilibrium value, and all other determinants are unchanged:
A) a shortage will exist in the market.
B) the quantity demanded will exceed the quantity supplied.
C) both the supply curve and the demand curve will shift to the right.
D) a surplus will exist in the market.

Question

Quizplus · Accepted Answer

When the market price is above the equilibrium price, the quantity supplied exceeds the quantity demanded, resulting in a surplus.

When the Market Price of a Good Is Above Its