Which of the following would indicate that price is temporarily above its market equilibrium?
A)There are a number of producers who are left with unwanted inventories.
B)There are a number of customers who are looking for a good but cannot find sellers.
C)New firms decide to enter the market.
D)The government must step in and impose a tax on the good.

Question

Quizplus · Accepted Answer

When price is above its market equilibrium, it results in a surplus where producers have more goods than consumers are willing to buy at that price, leading to unwanted inventories.

Which of the Following Would Indicate That Price Is Temporarily