Question

If the actual price in this market were above the equilibrium price, quantity supplied would begreater than quantity demanded, so there would bedownward pressure on prices. true or false: if the actual price in this market were below the equilibrium price, suppliers could raise the price without losing sales.
a. True
b. False

Answer 1

A: True

True. Tire. True. True

Answer 2

Answer:

• TRUE
• TRUE ( A )

Explanation:

If the actual price is higher than the equilibrium price, the suppliers/dealers would want to take advantage of the increase in price by pushing more of their products into the open market or producing more of the products above their threshold. and this would lead to the increase in Quantity supplied without a corresponding increase in Quantity demanded. the effect of this is the downward pressure on the prices.

But if the actual price in the market is lower than the equilibrium price the consumers demand for the products will increase and this will lead to suppliers raising the prices without losing sales because Demand will be greater than supply at that point.