Asurplusexistsinamarketif
A. there is an excess demand for the good.
B. quantity demanded exceeds quantity supplied.
C. the current price is above its equilibrium price.
D. All of the above are correct.
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Supposerosesarecurrentlysellingfor$40perdozen,buttheequilibriumpriceofrosesis$30perdozen.Wewouldexpecta
A. shortage to exist and the market price of roses to increase.
B. shortage to exist and the market price of roses to decrease.
C. surplus to exist and the market price of roses to increase.
D. surplus to exist and the market price of roses to decrease.
Whenthepriceofagoodislowerthantheequilibriumprice,
A. a surplus will exist.
B. buyers desire to purchase more than is produced.
C. sellers desire to produce and sell more than buyers wish to purchase.
D. quantity supplied exceeds quantity demanded.
Thelawofsupplystatesthat,otherthingsequal,anincreasein
A. price causes quantity supplied to increase.
B. price causes quantity supplied to decrease.
C. quantity supplied causes price to increase.
D. quantity supplied causes price to decrease.
Anincreaseinsupplyisrepresentedbya
A. movement downward and to the left along a supply curve.
B. movement upward and to the right along a supply curve.
C. rightward shift of a supply curve.
D. leftward shift of a supply curve.
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