Question

question 7 (10 points)what is the result when prices in a market are fixed either above or below the equilibrium price?when price is set above, there is a surplus; and when price is set below, there is a shortage.when price is set above, there is a surplus; and when price is set below, there is a surplus.when price is set above, there is a shortage; and when price is set below, there is a shortage.when price is set above, there is a shortage; and when price is set below, there is a surplus.

Explanation:

When a price is fixed above the equilibrium price, producers supply more goods than consumers demand, creating a surplus. When a price is fixed below the equilibrium price, consumers demand more goods than producers supply, creating a shortage.

Answer:

A. When price is set above, there is a surplus; and when price is set below, there is a shortage.