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Market Equilibrium & Price Controls · Question 17 of 52

Question 17

MediumOriginal question

When there is excess demand in a market, the price tends to

Options for question 17

Show the answer and explanation
CorrectNot quiteAnswer C

Correct answer: C

Explanation

  1. Buyers who cannot get the good offer more; as the price rises, demand contracts and supply extends until the gap closes.

Concept
Excess demand and price
Typical time
70 s
Your time
—
The rule this testsExcess demand and excess supply
Practise this chapter →

Ten questions from Market Equilibrium & Price Controls, at your own pace.

Practise this chapter →

Ten questions from Market Equilibrium & Price Controls, at your own pace.