If a computer software company introduces a new program and finds that orders from wholesalers far exceed the number of units that are being produced,
A) there is an excess supply and price can be expected to decrease.
B) there is an excess supply and price can be expected to increase.
C) there is an excess demand and price can be expected to decrease.
D) there is an excess demand and price can be expected to increase.

Question

Quizplus · Accepted Answer

When orders from wholesalers exceed the number of units produced, it indicates excess demand. In such a scenario, prices can be expected to increase due to the higher demand relative to supply.

If a Computer Software Company Introduces a New Program and Finds