A price below the equilibrium price is likely to result in Group of answer choices A) Surplus B) Shortage C) Excess Supply D) a further price decrease
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'If the price of a good is above equilibrium price then; (a) There is a surplus and the price will rise_ There is a surplus and the price will fall There is shortage and the price will fall (d) The quantity demanded is equal to the quantity supplied and the price remains unchanged'
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If a surplus exists in a market, we know that the actual price is A. below the equilibrium price, and the quantity demanded is greater than the quantity supplied. B. below the equilibrium price, and the quantity supplied is greater than the quantity demanded. C. above the equilibrium price, and the quantity supplied is greater than the quantity demanded.
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A surplus of a product will arise when price is above equilibrium with the result that quantity demanded exceeds quantity supplied. above equilibrium with the result that quantity supplied exceeds quantity demanded. below equilibrium with the result that quantity demanded exceeds quantity supplied. below equilibrium with the result that quantity supplied exceeds quantity demanded.
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