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algol [13]
3 years ago
7

At $5 a bushel, there is an excess supply of wheat. is this price above or below the equilibrium price? in two or three sentence

s, explain your answer.
Social Studies
2 answers:
Gnesinka [82]3 years ago
7 0

This price is above the equilibrium price due to the fact that when Supply increases the production costs decreases in other words it can be because the price floor whitch is a price that is set above the equilibrium price, it is not allowed to decrease and eventually causes a surplus in products.

garik1379 [7]3 years ago
6 0
For the answer to the question above asking at $5 a bushel, there is an excess supply of wheat. is this price above or below the equilibrium price?
I think it is a price floor above the equilibrium price.The price is too high so that the suppliers will produce more than the consumption.
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