Question

The equilibrium price of a good in market A is $24. The current price of the good in market A is $21. At this price, a(n) ________________________ of the good exists in market A.

Answer 1

Answer:

Excess supply as well as excess demand in market A

Explanation:

Equilibrium price is the price of the market, where the quantity of the goods supplied will be equal to the quantity of the goods demanded by the customers. The equilibrium price is determined by the intersect of the demand and the supply curve.

When the equilibrium price is $24, but the current price is $21, so, at this price, there would be supply and the demand in excess for the customers of the goods exist in the market A.