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:

Trickle-down Theories

Theories suggesting that trends, behaviors, or innovations initiated by higher socioeconomic groups gradually spread to lower socioeconomic groups.

Trickle-down Theory

An economic hypothesis that argues benefits for the wealthy will "trickle down" to everyone else, improving the economy as a whole.

Reward-rejection

A psychological response where an individual rejects a reward, possibly due to feeling it is unearned or fearing its implications.

Coding

Coding involves translating and structuring data or instructions into a form that is understandable by computers and software systems to perform specific tasks.