-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

At a price of P0, quantity demanded equals quantity supplied, indicating a market equilibrium and making P0 the market clearing price. Therefore, there is no surplus or shortage at this point, making statement D false.

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