Question

Suppose shoe sellers charge $200 for the latest pair of boots, but the equilibrium price is only $130. This means that there will be an _______ in the boot market. a. Excess supply b. Excess demand c.equilibrium

Answer 1

A. excess supply

Step-by-step explanation:

The higher the price for a product, the more quantity there is of it to sell. However because the equilibrium price is lower, the quantity demanded for boots at $200 is lower than the quantity supplied so there is an excess supply of boots.