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zhuklara [117]
3 years ago
5

Suppose you produce T-shirts, and the equilibrium price for a T-shirt is $5. You haven't really done much research, so you decid

e to charge a price of $3 per shirt. At this price, there will be an _____ of T-shirts.
A. equilibrium
B. excess supply
C. excess demand
Social Studies
2 answers:
damaskus [11]3 years ago
7 0

The right answer is excess of supply. This happens when the price is lower than the equilibrium price. The simple logic is: If you sell something cheaper, then everyone will go and buy it. Usually you as a producer set a price lower because you cannot sell it so, following the logic previously explained, the best you can do is reduce its price so people come and buy it. Technically it is when the quantity willing supplied by the producers is higher than the quantity demanded by the consumers.

pshichka [43]3 years ago
5 0
Out of all 3 i'll say its c.excess demand
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