Answer:
<u>C) quantity supplied is greater than the quantity demanded.</u>
<u>Explanation:</u>
We need not be confused, <em>the market-clearing price is referring to the equilibrium price. </em>Thus, if the current price is above the market-clearing price (that is, the price at which quantity demanded equals quantity supplied), it means the <u>quantity supplied</u> is <em>greater</em> than the<u> quantity demanded</u> of the item.
For example, at a price of $1 per orange, there's an equal amount in quantity demanded and quantity supplied of orange. However, the price increases to $2 per orange; which makes the current price of an orange greater than the market-clearing price of $1.
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Answer: The answer is elastic demand because elasticity of demand is > than 1
Explanation:Elasticity of demand is the degree of responsiveness of demand to slight change in price of goods. It is calculated as ED=% change in Qd/% change in price
Since Qd is 3 and 5
Qo-Q1/Qo*100%
3 - 5/3*100%
= -2/3*100%
= -200/3
=-66.6%(ignore the minus sign)
Po-P1/Po*100%
8-6/8*100
=2/8*100%
= 25%
ED= 66.6/25
=2.6
6-8/6*100%
=-2/6*100%
=-200/6
=-33.3%
ED= 66.6/33.3
=2
Since the elasticity of demand is greater than 2. Therefore elasticity of demand is elastic
When <u>cost of production increase </u> business firms will supply lower quantity of output
<h3>Effect of production cost on prices </h3>
When the cost of production increases, producers will tend to produce a lesser quantity of goods and services and this is cause an increase in demand over supply in the open market.,
An increase in demand without a corresponding increase in supply will cause the supply curve to shift to the left.
Hence we can conclude that When <u>cost of production increase </u> business firms will supply lower quantity of output
Learn more about shift in supply curve : brainly.com/question/23364227
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Anwser - 3:2 I’m not sure if u still need help
