If the Quantity Demanded of Milk Is 55,000 and the Quantity

question 113

Multiple Choice

If the quantity demanded of milk is 55,000 and the quantity supplied of milk is 80,000, then:

• A) there is an excess supply of 25,000 units of milk.
• B) the price of milk will tend to rise to clear the market.
• C) consumers get the milk they want so market equilibrium exists.
• D) there is an excess demand of 25,000 units of milk.
• E) this is the intersection of market supply and demand curves.