Answer to Question #206089 in English for nana

Question

If the price is higher than the equilibrium price

• A. Excess demand is created which results in upward pressure on the price as buyers are competing to get hold of the product. This process continues until a higher market equilibrium price than R6 is reached.
• B. Excess demand is created which results in upward pressure on the price as buyers are competing to get hold of the product. This process continues until the market equilibrium price of R6 is reached.
• C. An excess supply is created on the market which results in downward pressure on the price as suppliers are trying to get rid of unsold stock. This process continues until a lower market equilibrium price than R6 is reached.
• D. An excess supply is created on the market which results in downward pressure on the price as suppliers are trying to get rid of unsold stock. This process continues until the market equilibrium price of R6 is reached.

Answer 1

• D. An excess supply is created on the market which results in downward pressure on the price as suppliers are trying to get rid of unsold stock. This process continues until the market equilibrium price of R6 is reached.