Question

96 POINTS!!!!!!!!

What happens to each of the following to cause a surplus in the market?

A. Price
B. Quantity Demanded
C. Quantity Supplied

What happens to each of the following to cause a shortage in the market?
A. Price
B. Quantity Demanded
C. Quantity Supplied

Answer 1

A. A price floor is set above price equilibrium.
B. Quantity demanded is less than Quantity supplied
C. Quantity supplied exceeds Quantity demanded

A. When a price ceiling is set below the equilibrium price
B. Quantity demanded exceeds Quantity supplied
C. Quantity supplied is less than quantity demanded