-Refer to Exhibit 3-8.A price of $5 will result in a ___________________ in this market which will cause the price of the product to gravitate _______________.
A) shortage; downward
B) shortage; upward
C) surplus; downward
D) surplus; upward

Question

-Refer to Exhibit 3-8.A price of $5 will result in a ___________________ in this market which will cause the price of the product to gravitate _______________.
A) shortage; downward 
B) shortage; upward 
C) surplus; downward 
D) surplus; upward

Quizplus · Accepted Answer

A price of $5 will result in a surplus in the market, causing the price of the product to gravitate downward as suppliers reduce prices to sell excess inventory.