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Posted 2 months ago

\begin{tabular}{lll} 
Price & Quantity demanded & Quantity Supplied \\
\hline$20\$ 20 & 0 & 12 \\
$18\$ 18 & 2 & 10 \\
$16\$ 16 & 2 & 8 \\
$14\$ 14 & 3 & 6 \\
$12\$ 12 & 4 & 4 \\
$10\$ 10 & 5 & 2 \\
$8\$ 8 & 6 & 0
\end{tabular}

Which of the following would cause a surplus in this market?
Choose 1 answer:
(A) Any price below $12\$ 12
(B) A price of $12\$ 12
(C) Any price above $12\$ 12
(D) Any price below $20\$ 20
(E) If the good was free
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Answer from Sia
Posted 2 months ago
Solution by Steps
step 1
Identify the condition for a surplus in the market: A surplus occurs when the Quantity Supplied is greater than the Quantity Demanded at a given price
step 2
Analyze the table data: Look for prices where the Quantity Supplied exceeds the Quantity Demanded
step 3
Determine the price range for surplus: From the table, a surplus occurs at prices 20,20, 18, 16,and16, and 14, where the Quantity Supplied is greater than the Quantity Demanded
step 4
Match the price range to the answer choices: The answer choice that corresponds to the prices where a surplus occurs is the correct answer
Answer
C
Key Concept
Surplus in the Market
Explanation
A surplus occurs when the quantity supplied exceeds the quantity demanded at a given price. In this case, any price above $12 results in a surplus.

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