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

Which of the following would cause a surplus in this market?
Choose 1 answer:
(A) Any price below $\$ 12$
(B) A price of $\$ 12$
(C) Any price above $\$ 12$
(D) Any price below $\$ 20$
(E) If the good was free
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Question

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

Which of the following would cause a surplus in this market?
Choose 1 answer:
(A) Any price below $\$ 12$
(B) A price of $\$ 12$
(C) Any price above $\$ 12$
(D) Any price below $\$ 20$
(E) If the good was free
Report a problem

Accepted Answer

∻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, $18, $16, 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 $12 results in a surplus.⚹◊What is the relationship between quantity demanded and quantity supplied in this market based on the given information?⍭ Generate me a similar question◊$

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