Asked by Gabriella Gonzales on Jul 13, 2024
Verified
Refer to Table 3.1. If the price per pizza is $3, the price will
A) remain constant because the market is in equilibrium.
B) increase because there is an excess demand in the market.
C) increase because there is an excess supply in the market.
D) decrease because there is an excess supply in the market.
Excess Demand
A situation in which the demand for a product or service exceeds its supply in a market.
Market Equilibrium
A condition in which the quantity of a product demanded by consumers equals the quantity supplied by producers, leading to a stable market price.
- Uncover situations of excessive supply and heightened demand within a marketplace and foresee the market's response.
- Explore the effect of changing prices on the harmonious balance of market dynamics.
Verified Answer
NA
Nikki AllenJul 16, 2024
Final Answer :
B
Explanation :
At a price of $3, the quantity demanded (1,200 pizzas) exceeds the quantity supplied (600 pizzas), indicating excess demand. This imbalance typically leads to a price increase as suppliers can charge more due to higher demand.
Learning Objectives
- Uncover situations of excessive supply and heightened demand within a marketplace and foresee the market's response.
- Explore the effect of changing prices on the harmonious balance of market dynamics.