4
QuizMultiple Choice
Elasticity and Incentives
Question 4 • SEPHS - SOC240 - Economics (Fall)
The graph shows a point of equilibrium.If the quantity supplied is greater than the quantity demanded, what must happen to the price in order to reach equilibrium?
Answer
T
The price of the product will increase to meet equilibrium.T
The price of the product will decrease to meet equilibrium.S
Supply and demand must be raised.S
Supply and demand must be lowered.