-The above figure shows the market for game day t-shirts.If the price of t-shirts is $12,then
A) there is a shortage and the price of t-shirts will fall.
B) there is a shortage and the price of t-shirts will rise.
C) there is a surplus and the price of t-shirts will rise.
D) there is a surplus and the price of t-shirts will fall.
E) the market is in equilibrium.

Question

-The above figure shows the market for game day t-shirts.If the price of t-shirts is $12,then
A) there is a shortage and the price of t-shirts will fall. 
B) there is a shortage and the price of t-shirts will rise. 
C) there is a surplus and the price of t-shirts will rise. 
D) there is a surplus and the price of t-shirts will fall. 
E) the market is in equilibrium.

Quizplus · Accepted Answer

If the price of t-shirts is $12 and it is above the equilibrium price, there will be a surplus, leading to a decrease in price as sellers try to sell excess inventory.

-The Above Figure Shows the Market for Game Day T-Shirts