When Market Price Is Higher Than the Equilibrium Price,a Surplus

question 25

True/False

When market price is higher than the equilibrium price,a surplus is created.This will put downward pressure on price,causing quantity demanded to increase and quantity supplied to decrease until equilibrium is reestablished.

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Definitions:

Previous Balance

The amount of money that was in an account or owed at the end of the last billing cycle.

Cycle Closing

The process of finalizing all transactions at the end of an accounting period to prepare for financial reporting.

Finance Charge

The total cost, including interest and other fees, associated with borrowing money or extending credit.

Previous Balance

The amount of money owed or available in an account before the latest transactions.