PRC-3 · Chapter 10 · Question 7 of 70
In a free market, if the current market price of wheat is set artificially higher than the equilibrium price, what market condition will inevitably occur?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) A surplus of wheat
Explanation
When the price is above equilibrium, the quantity supplied exceeds the quantity demanded, resulting in an excess supply, or surplus.
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