Question

N

48

2019ch4
20
18
16+
14.
12
10
8
6
4
2
price
↓ fall
D
+
+
10 20 30 40 50 60 70 80 90 quantity
47. Refer to Figure 4-19. If price in this market is currently $14, then there would be a(n)
a. surplus of 20 units. The law of supply and demand predicts that the price will rise from $14 to
a higher price.
b. excess supply of 20 units. The law of supply and demand predicts that the price will fall from
$14 to a lower price.
c. surplus of 40 units. The law of supply and demand predicts that the price will rise from $14 to
a higher price.
d. excess supply of 40 units. The law of supply and demand predicts that the price will fall from
$14 to a lower price.
48. If, at the current price, there is a surplus of a good, then
a. sellers are producing more than buyers wish to buy.
b. the market must be in equilibrium.
c. the price is below the equilibrium price.
d. quantity demanded equals quantity supplied.