Which one of the following statements is incorrect? A. If the market price is above the equilibrium price, a market surplus will develop. B. If the market price is below the equilibrium price, there will be an excess demand for the product. C. If the market price is below the equilibrium price, a market shortage will develop. D. If the market price is above the equilibrium price, there will be an excess supply of the product. E. If the market price is above the equilibrium price, the quantity demanded is greater than the quantity supplied.
Which one of the following statements is incorrect? A. If the market price is above the equilibrium price, a market surplus will develop. B. If the market price is below the equilibrium price, there will be an excess demand for the product. C. If the market price is below the equilibrium price, a market shortage will develop. D. If the market price is above the equilibrium price, there will be an excess supply of the product. E. If the market price is above the equilibrium price, the quantity demanded is greater than the quantity supplied.
Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter8: Understanding Markets And Industry Changes
Section: Chapter Questions
Problem 2MC
Related questions
Question
Which one of the following statements is incorrect?
A. If the market
B. If the market price is below the equilibrium price, there will be an excess demand for
the product.
C. If the market price is below the equilibrium price, a market shortage will develop.
D. If the market price is above the equilibrium price, there will be an
product.
E. If the market price is above the equilibrium price, the quantity demanded is greater
than the quantity supplied.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Economics (MindTap Course List)
Economics
ISBN:
9781337617383
Author:
Roger A. Arnold
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Economics (MindTap Course List)
Economics
ISBN:
9781337617383
Author:
Roger A. Arnold
Publisher:
Cengage Learning