Asked by AWebb Moran on Jul 26, 2024
Verified
A surplus of shoes will cause:
A) a decrease in the supply of shoes.
B) a decrease in the demand for shoes.
C) an increase in the price of leather.
D) a rightward shift of the supply curve of shoes.
E) a decrease in the price of shoes.
Surplus
At a given price, the amount by which quantity supplied exceeds quantity demanded; a surplus usually forces the price down.
Supply Curve
A graph showing the relationship between the price of a good and the quantity of the good that producers are willing to supply.
- Ascertain the conditions that lead to an imbalance of supply and demand, causing market shortages and surpluses.
Verified Answer
ZK
Zybrea KnightJul 31, 2024
Final Answer :
E
Explanation :
A surplus of shoes means there is more supply than demand, which puts pressure on sellers to lower the price in order to sell all the shoes. This leads to a decrease in the price of shoes.
Learning Objectives
- Ascertain the conditions that lead to an imbalance of supply and demand, causing market shortages and surpluses.