At a zero price, which of the following conditions is TRUE for an economic good?
A) Its quantity supplied exceeds its quantity demanded.
B) Its quantity demanded exceeds its quantity supplied.
C) Its quantity demanded equals its quantity supplied.
D) Scarcity disappears.

Question

Quizplus · Accepted Answer

At a zero price, the quantity demanded for an economic good typically exceeds its quantity supplied because consumers are more willing to consume a good that is free, leading to a higher demand, while suppliers are less willing to supply the good without receiving a price, leading to a lower supply.

At a Zero Price, Which of the Following Conditions Is