Question

if the current market price is above the equilibrium price, then:
a. the quantity supplied will exceed the quantity demanded.
b. the price will have to increase to establish equilibrium.
c. the quantity demanded exceeds the quantity supplied.
d. demand will shift to the left.

Explanation:

When the market price is above the equilibrium price, suppliers are motivated to offer more goods at the higher price, while consumers demand less due to the elevated cost. This creates a situation where the amount supplied is greater than the amount demanded. Option b is incorrect because the price would decrease, not increase, to reach equilibrium. Option c describes a shortage, which occurs when price is below equilibrium. Option d is incorrect because a price change does not shift the demand curve, it only causes a movement along it.

Answer:

a. the quantity supplied will exceed the quantity demanded.