If at a particular price level, real domestic output from producers is greater than real domestic output desired by purchasers,

Question

3 years ago

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If at a particular price level, real domestic output from producers is greater than real domestic output desired by purchasers,

then there will be a general: A. Surplus and the price level will rise B. Surplus and the price level will fall C. Shortage and the price level will rise D. Shortage and the price level will fall

Business

1 answer:

Alexeev081 [22] · Answer 1 · 2022-06-23T06:55:34+03:00

Answer:

B. Surplus and the price level will fall

Explanation:

If at a particular price level the real domestic output from producers is greater than real domestic output desired by purchasers it means that supply has outstripped demand and price has not changed.

If supply is greater than demand, there would be a surplus and prices would fall.

An increase in supply is shown by a rightward shift of the supply curve.