question 15\nin a competitive product market, if the current price is higher than the equilibrium price,\na)…

question 15\nin a competitive product market, if the current price is higher than the equilibrium price,\na) a shortage will occur until the price rises and equilibrium is restored\nb) a surplus will occur until the price rises and equilibrium is restored\nc) a shortage will occur until the price falls and equilibrium is restored\nd) a surplus will occur until the price falls and equilibrium is restored\ne) a shortage will occur until the government sets a price floor to restore equilibrium

question 15\nin a competitive product market, if the current price is higher than the equilibrium price,\na) a shortage will occur until the price rises and equilibrium is restored\nb) a surplus will occur until the price rises and equilibrium is restored\nc) a shortage will occur until the price falls and equilibrium is restored\nd) a surplus will occur until the price falls and equilibrium is restored\ne) a shortage will occur until the government sets a price floor to restore equilibrium

Answer

Brief Explanations:

When the current price is higher than the equilibrium price in a competitive market, quantity - supplied exceeds quantity - demanded. This results in a surplus. To restore equilibrium, the price must fall as producers will reduce supply and consumers will increase demand at lower prices.

Answer:

D. a surplus will occur until the price falls and equilibrium is restored