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If the price of tablets is raised above the equilibrium, there will be a

a.shortage of tablets and price will rise
b.surplus of tablets and price will rise
c.shortage of tablets and price will fall
d. surplus of tablets and price will fall

1 Answer

2 votes

Final answer:

Raising the price of tablets above equilibrium results in a surplus and causes prices to fall as sellers attempt to sell unsold inventory.

Step-by-step explanation:

If the price of tablets is raised above the equilibrium, this will typically cause a surplus of tablets on the market.

Since the price is higher than what many consumers are willing to pay, there will be fewer buyers, and as a result, more unsold inventory.

This surplus then tends to exert a downward pressure on prices as sellers seek to clear unsold tablets.

Hence, the prices will generally begin to fall to reach a new equilibrium where the quantity demanded equals the quantity supplied again.

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User Angela P
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