7 If, for a product, the quantity supplied exceeds the quantity demanded, the market price will fall until O the quantity demanded exceeds the quantity supplied. The market will then be in equilibrium. O quantity demanded equals quantity supplied. The equilibrium price will then be lower than the market price. all consumers will be able to afford the product. quantity demanded equals quantity supplied. The market price will then equal the equilibrium price.
7 If, for a product, the quantity supplied exceeds the quantity demanded, the market price will fall until O the quantity demanded exceeds the quantity supplied. The market will then be in equilibrium. O quantity demanded equals quantity supplied. The equilibrium price will then be lower than the market price. all consumers will be able to afford the product. quantity demanded equals quantity supplied. The market price will then equal the equilibrium price.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
![### Question 7
If, for a product, the quantity supplied exceeds the quantity demanded, the market price will fall until:
- ( ) the quantity demanded exceeds the quantity supplied. The market will then be in equilibrium.
- (●) quantity demanded equals quantity supplied. The equilibrium price will then be lower than the market price.
- ( ) all consumers will be able to afford the product.
- ( ) quantity demanded equals quantity supplied. The market price will then equal the equilibrium price.
Explanation:
This question addresses the concept of market equilibrium. When the quantity supplied exceeds the quantity demanded, there is excess supply, leading to a downward pressure on the market price. The market price will adjust until the quantity demanded equals the quantity supplied, achieving market equilibrium. At this point, the equilibrium price is lower than the initial market price.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F09fcf446-1afb-4b15-acb5-39347ac88924%2Fbd995ea0-a457-4170-9dc1-d0d3033e451b%2F63nks7k_processed.png&w=3840&q=75)
Transcribed Image Text:### Question 7
If, for a product, the quantity supplied exceeds the quantity demanded, the market price will fall until:
- ( ) the quantity demanded exceeds the quantity supplied. The market will then be in equilibrium.
- (●) quantity demanded equals quantity supplied. The equilibrium price will then be lower than the market price.
- ( ) all consumers will be able to afford the product.
- ( ) quantity demanded equals quantity supplied. The market price will then equal the equilibrium price.
Explanation:
This question addresses the concept of market equilibrium. When the quantity supplied exceeds the quantity demanded, there is excess supply, leading to a downward pressure on the market price. The market price will adjust until the quantity demanded equals the quantity supplied, achieving market equilibrium. At this point, the equilibrium price is lower than the initial market price.
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