Assertion (A): At a price below equilibrium, there is excess supply.
Reason (R): Below equilibrium, quantity demanded is greater than quantity supplied.

Both A and R are true, and R is the correct explanation of A.Correct answerYour answerBoth A and R are true, but R is not the correct explanation of A.Correct answerYour answerA is true, but R is false.Correct answerYour answerA is false, but R is true.Correct answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer D

Correct answer: D

A is false: below equilibrium there is excess demand.
R is true, and it describes excess demand.

Concept: Below equilibrium
Typical timeTypical: 70 s
Your timeYours: —

The rule this testsExcess demand and excess supply

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

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Assertion (A): At a price below equilibrium, there is excess supply.Reason (R): Below equilibrium, quantity demanded is greater than quantity supplied.

Explanation

Assertion (A): At a price below equilibrium, there is excess supply.
Reason (R): Below equilibrium, quantity demanded is greater than quantity supplied.