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If in the market for Twinkies there are no shortages and no? surpluses, then

A. the price in that market is called equestrian price.
B. businesses would like to sell more Twinkies at the current price.
C. Twinkies must be an inferior good.
D. the price in that market is called equilibrium price.

1 Answer

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Final answer:

The price in a market with no shortages or surpluses is called equilibrium price.

Step-by-step explanation:

The concept being discussed in this question is equilibrium price. An equilibrium price is the price at which the quantity demanded equals the quantity supplied in a market with no shortages or surpluses. If there are no shortages or surpluses in the market for Twinkies, then the price in that market is called equilibrium price (option D).

At equilibrium price, the quantity demanded and the quantity supplied are in balance. This means that businesses would not want to sell more Twinkies at the current price (options A and B) as the market is already in equilibrium. The statement about Twinkies being an inferior good (option C) is not related to the given scenario.

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