Question

The equilibrium price for Gizmos Puzzle Toys is $10, but Gizmos are currently priced at $12 throughout the market. In the typical store that sells Gizmos, we might expect:___________

Answer 1

A surplus.

Step-by-step explanation:

Equillibrum price is the price at which a supplier is willing to supply a product and the consumer is willing to buy.

However of the price rises to $12 as is in this scenario, it will cause the supplier to have an excess supply.

This is because people will not be willing to buy at the higher market price. Demand for Gizmos will fall.

Suppliers will have surplus products that people do not want to buy.

This is represented diagrammatically. When price rises to F it creates a surplus.

Answer 2

Answer: Surplus supply

Explanation: At equilibrium price the amount of commodity supply is equal to the quantity demanded. At a price below equilibrium price there will be surplus demand while at a price above equilibrium price there will be surplus supply.

So if if the equilibrium price for Gizmos is $10 and it is sold at $12 which is above the equilibrium price, consumers will tend to buy less which will result in *surplus supply ".