Use the table below to answer the following questions.
Table 3.5.1
The Market for Car-Seat Heaters

-Refer to Table 3.5.1.If the price is set at $80,there will be a
A)shortage of 200 units and price will rise.
B)shortage of 200 units and demand will fall.
C)surplus of 200 units and demand will rise.
D)surplus of 200 units and supply will fall.
E)surplus of 200 units and price will fall.

Question

Use the table below to answer the following questions.
Table 3.5.1
The Market for Car-Seat Heaters
 
-Refer to Table 3.5.1.If the price is set at $80,there will be a
A)shortage of 200 units and price will rise. 
B)shortage of 200 units and demand will fall. 
C)surplus of 200 units and demand will rise. 
D)surplus of 200 units and supply will fall. 
E)surplus of 200 units and price will fall.

Quizplus · Accepted Answer

If the price is set above the equilibrium price, there will be a surplus, meaning supply exceeds demand. To clear the surplus, the price will typically fall.

Use the Table Below to Answer the Following Questions