Which of the following would indicate that price is temporarily ...

[KWilfred]

Which of the following would indicate that price is temporarily above its market equilibrium?
 
  A) There are a number of producers who are left with unwanted inventories.
  B) There are a number of customers who are looking for a good but cannot find sellers.
  C) New firms decide to enter the market.
  D) The government must step in and impose a tax on the good.

Question 2

Explain whether you would expect the elasticity of supply to be highly elastic or inelastic for fresh cut flowers and why.
 
  What will be an ideal response?

[elizabethrperez]

Answer to Question 1

A

Answer to Question 2

The elasticity of supply is very inelastic for fresh cut flowers. These flowers are perishable and quickly become worthless. The seller will accept almost any market price.

[KWilfred]

Thanks for the timely response, appreciate it

[dreamfighter72]

Wow, this really help