8
QuizMultiple Choice

Elasticity and Incentives

Question 8 • (Galli)WCA 2221 Civics/Economics 1st nine weeks 26-27

What happens when the quantity of a good supplied at a given price is greater than the quantity demanded?

Answer
e
excess supply
s
stable prices
e
exact equilibrium
i
increased production

Explanation

When sellers offer more of a good than buyers want to purchase at the current price, a surplus forms. This situation is called excess supply, so the correct choice is excess supply. The market is not at equilibrium because quantity supplied and quantity demanded are unequal.

AI-written and checked against the verified answer.

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