If the current market price is above the equilibrium price, then: ...

[bucstennis@aim.com]

If the current market price is above the equilibrium price, then:
 a. the quantity demanded exceeds the quantity supplied.
  b. there will be a shortage.
  c. the quantity supplied will exceed the quantity demanded.
  d. the price will have to increase to establish equilibrium.
  e. demand will shift to the left.

Question 2

Assume that the equilibrium price for a good is 5 . If the market price is 10, a:
 a. shortage causes the price to decline toward 5.
  b. surplus causes the price to rise above 10.
  c. shortage causes the price to rise above 10.
  d. surplus causes the price to decline toward 5.

[scrocafella]

Answer to Question 1

c

Answer to Question 2

d

[bucstennis@aim.com]

Excellent

[lindahyatt42]

Thanks for the timely response, appreciate it