When the price of a good is above the equilibrium, there will be
ECONOMICS
WAEC 2019
When the price of a good is above the equilibrium, there will be
- A. a shortage
- B. a surplus.
- C. unemployment
- D. inflation
Correct Answer: B. a surplus.
Explanation
If the price of a good is above equilibrium, this means that the quantity of the good supplied exceeds the quantity of the good demanded. There is a surplus of the goods on the market.
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