2
QuizMultiple Choice
Elasticity and Incentives
Question 2 • (Galli)WCA 2221 Civics/Economics 1st nine weeks 26-27
The graph shows excess supply.Which needs to happen to the price indicated by p2 on the graph in order to achieve equilibrium?
Answer
A
It needs to be increased.B
It needs to be decreased.C
It needs to reach the price ceiling.D
It needs to remain unchanged.