-Refer to the information above to answer this question.Assume that there is a surplus of 20 units.What does this mean?
A)Price will rise.
B)Price must be $5.
C)The quantity traded is 80.
D)Buyers are only willing to pay $2 less than the current price in order to buy all of the quantity supplied.

Question

-Refer to the information above to answer this question.Assume that there is a surplus of 20 units.What does this mean?
A)Price will rise. 
B)Price must be $5. 
C)The quantity traded is 80. 
D)Buyers are only willing to pay $2 less than the current price in order to buy all of the quantity supplied.

Quizplus · Accepted Answer

A surplus means that the quantity supplied exceeds the quantity demanded at the current price, indicating that buyers are not willing to purchase all the units at that price, often leading to a decrease in price.

-Refer to the Information Above to Answer This Question