When the price is above equilibrium,

buyers cannot get all they want, and they bid the price upCorrect answerYour answerthe market is in equilibriumCorrect answerYour answersellers cannot sell all they offer, and competition among them lowers the priceCorrect answerYour answersupply falls to zeroCorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer C

Correct answer: C

Above equilibrium, quantity supplied exceeds quantity demanded.
Unsold stock makes sellers cut prices until the gap disappears.

Concept: Adjustment from above
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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Ten questions from Market Equilibrium & Price Controls, at your own pace.

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When the price is above equilibrium,

Explanation