Asked by Avelina Milam on Apr 26, 2024
Verified
(Table: Competitive Market for Good Z) Use Table: Competitive Market for Good Z.A surplus of the good will occur at a price of
A) $0.
B) $5.
C) $10.
D) $15.
Surplus
The amount of an asset or resource that exceeds the portion that is actively utilized.
Competitive Market
A market structure where many firms offer products or services that are similar, encouraging competition and efficiency.
- Delineate the concept of market equilibrium and the conditions for surpluses and shortages.
Verified Answer
SA
Syed Abdullah AhmedMay 01, 2024
Final Answer :
D
Explanation :
A surplus occurs when the price is above the equilibrium price, causing quantity supplied to exceed quantity demanded. At $15, the quantity supplied (500 units) exceeds the quantity demanded (200 units), leading to a surplus.
Learning Objectives
- Delineate the concept of market equilibrium and the conditions for surpluses and shortages.