82.0k views
2 votes
Suppose roses are currently selling for $20 per dozen, but the equilibrium price of roses is $30 per dozen. Wewould expect aa. shortage to exist and the market price of roses to increase.b. shortage to exist and the market price of roses to decrease.c. surplus to exist and the market price of roses to increase.d. surplus to exist and the market price of roses to decreas

1 Answer

0 votes

Answer:

A.

Step-by-step explanation:

Equilibrium is a state of equality or balance between market demand and supply, there is no excess demand or supply.

In this case, the price at which roses are currently selling is lower than the equilibrium price. This cause that the quantity demand of roses is going to increase. In that case, there would be a shortage of quantity.

Shortage is a disparity between the amount demanded for a product or service and the amount supplied in a market causing not enough to be produced to satisfy demand.

If the demand is no satisfy, the prices are going to increase and find a new equilibrium price.

User Stardt
by
5.5k points