Asked by
yaumel delgado
on Oct 13, 2024Verified
When price is $2
A) there is a surplus.
B) there is a shortage.
C) quantity demanded is less than quantity supplied.
D) price must fall to get to equilibrium.
Surplus
A surplus refers to the amount by which the quantity supplied of a product or service exceeds the quantity demanded, often resulting in a decrease in prices.
Shortage
A market condition where the demand for a good exceeds its supply at a specific price, often leading to price increases.
Quantity Demanded
The total amount of a good or service that consumers are willing and able to purchase at a given price in a given time period.
- Gain insight into the concepts of supply inadequacies and overabundance and their implications on the behavior of markets.
Verified Answer
KB
Learning Objectives
- Gain insight into the concepts of supply inadequacies and overabundance and their implications on the behavior of markets.