-When the current price of an item is greater than the item's market clearing price
A) supply is greater than demand.
B) demand is greater than supply.
C) quantity supplied is greater than quantity demanded.
D) quantity supplied is less than quantity demanded.

Question

-When the current price of an item is greater than the item's market clearing price
A) supply is greater than demand. 
B) demand is greater than supply. 
C) quantity supplied is greater than quantity demanded. 
D) quantity supplied is less than quantity demanded.

Quizplus · Accepted Answer

When the current price of an item is greater than the item's market clearing price, it means that the quantity supplied is greater than the quantity demanded, leading to a surplus.

-When the Current Price of an Item Is Greater Than