Asked by
Komal Sabharwal
on Nov 17, 2024
Verified
Suppose roses are currently selling for $30 per dozen, but the equilibrium price of roses is $25 per dozen. We would expect a
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.
Equilibrium Price
The price at which the quantity of a good or service demanded by consumers equates to the quantity supplied by producers, leading to market balance.
Surplus
The amount by which the quantity of something exceeds its demand, often referring to unsold goods or surplus budget in economics.
- Familiarize yourself with the concept of market equilibrium concerning price and quantity.
- Predict market outcomes based on changes in market conditions.
Verified Answer
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Learning Objectives
- Familiarize yourself with the concept of market equilibrium concerning price and quantity.
- Predict market outcomes based on changes in market conditions.