Question

If a surplus exists in a​ market, we know that the actual price is

A. below the equilibrium​ price, and the quantity demanded is greater than the quantity supplied.
B. below the equilibrium​ price, and the quantity supplied is greater than the quantity demanded.
C. above the equilibrium​ price, and the quantity supplied is greater than the quantity demanded.

Answer 1

Answer:

C

Explanation:

Surplus is the situation in which there is excess of supply. This exists when the quantity supplied is higher than the quantity demanded or the quantity that producers offer is greater than the quantity that consumers want to buy. The graph attached shows that this situation happens when the price is above the equilibrium price.