Question

Exhibit 3-8 Demand and Supply Data for Video Games Price Quantity Demanded of Video Games Quantity Supplied of Video Games 400 900 450 850 500 550 750 600 700 650 700 750 In Exhibit 3-8, if there is a surplus of video games of 200 units, the current price of video games must be: a. $40. b. $60. c. $50. d. $45. 25.- When the price of a good is above its equilibrium price, a: a. surplus puts upward pressure on the price. b. surplus puts downward pressure on the price. c. shortage puts downward pressure on the price. d. shortage puts upward pressure on the price.

Answer 1

Exhibit 3-8 Demand and Supply Data for Video Games Price Quantity Demanded of Video Games Quantity Supplied of Video Games 400 900 450 850 800 60 L 550 Surplus of 200 units 750 700 600 650 650 700 750 In Exhibit 3-8. if there is a surplus of video games of 200 units, the current price of video games must be: a. $40. Surplus happens when the price is more than the b. $60. equilibrium price, At this price the supply will be more than C. $50. the demand, The equilibrium price is 50, where the demand d. $45. equals to supply. If the price is 60, then the surplus will be 200 units (750 - 550), 25 - When the price of a good is above its equilibrium price, a: a. surplus puts upward pressure on the price. b. surplus puts downward pressure on the price. c. shortage puts downward pressure on the price. d. shortage puts upward pressure on the price. The surplus puts downward pressure on the price. When the supply is more than the demand, the seller can sell more of the goods only by decreasing the price. So the pressure will be downwards.