Suppose that when the price of broccoli is $4 per pound, buyers wish to buy 500 pounds per day and sellers wish to sell 800 pounds per day. In this case:
A)excess supply will lead the price of broccoli to fall.
B)excess demand will lead the price of broccoli to fall.
C)excess supply will lead the price of broccoli to rise.
D)excess demand will lead the price of broccoli to rise.

Question

Quizplus · Accepted Answer

If the quantity that sellers wish to sell is 800 pounds per day, and the quantity that buyers wish to buy is 500 pounds per day, then there is excess supply, which will lead the price of broccoli to fall.

Suppose That When the Price of Broccoli Is $4 Per