Question

If a bookstore manager prices a book higher than the equilibrium price, then _____. A. the market price of the book will become higher B. the manager should expect to sell all of the books C. there will be an excess demand for these books D. there will be an excess supply of these books

Answer 1

D. There will be an excess supply of these books.

Answer 2

If a bookstore manager prices a book higher than the equilibrium price, then D. there will be an excess supply of these books. Equilibrium price is where supply and demand are balanced and due to the economic variables they will not change. If a manager prices a book higher than the equilibrium price then there will be an excess supply of the books due to them not having a price point where the demand will be equal to the supply wanted.