Question
What happens when the quantity of a good supplied at a given price is greater than the quantity demanded?
A. Excess supply
B. Stable prices
C. Exact equilibrium
D. Increased production
A. Excess supply
B. Stable prices
C. Exact equilibrium
D. Increased production
Answers
GPT-4o mini
A. Excess supply
When the quantity of a good supplied at a given price is greater than the quantity demanded, it results in excess supply. This means there is a surplus of the good at that price, which can lead to downward pressure on prices as sellers try to attract buyers.
When the quantity of a good supplied at a given price is greater than the quantity demanded, it results in excess supply. This means there is a surplus of the good at that price, which can lead to downward pressure on prices as sellers try to attract buyers.