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Igoryamba
4 years ago
12

Suppose a producer charges $20 for a new toy. At this price, the producer supplies more toys than people demand, so there is a(n

) _____. The producer decides to lower the price to $15. At this new price, quantity supplied equals quantity demanded. So, $15 is the _____.
Business
2 answers:
Olin [163]4 years ago
7 0

A. excess supply, equilibrium price :)

Mkey [24]4 years ago
3 0
Suppose a producer charges $20 for a new toy. At this price, the producer supplies more toys than people demand, so there is an excess supply. The producer decides to lower the price to $15. At this new price, quantity supplied equals quantity demanded. So $15 is the equilibrium price.
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