-According to the above table, at a price of $8 per unit, other things constant
A) consumers will continue to bid prices upward.
B) there will be no tendency for the market to approach an equilibrium.
C) a surplus of 100 units will exist.
D) a shortage of 80 units will exist.

Question

-According to the above table, at a price of $8 per unit, other things constant
A) consumers will continue to bid prices upward. 
B) there will be no tendency for the market to approach an equilibrium. 
C) a surplus of 100 units will exist. 
D) a shortage of 80 units will exist.

Quizplus · Accepted Answer

At a price of $8 per unit, if a surplus exists, it means that the quantity supplied exceeds the quantity demanded. A surplus of 100 units indicates that producers are unable to sell all their goods at this price, leading to a situation where the market is not in equilibrium, and prices may eventually decrease to eliminate the surplus.

-According to the Above Table, at a Price of $8