At $5 a bushel, there is an excess supply of wheat. is this price above or below the equilibrium price? in two or three sentences, explain your answer.

Question

Social Studies

Turner Floyd

8 April, 14:23

At $5 a bushel, there is an excess supply of wheat. is this price above or below the equilibrium price? in two or three sentences, explain your answer.

+4

Answers (1)

Know the Answer?

Kibbles · Answer 1

For the answer to the question above asking at $5 a bushel, there is an excess supply of wheat. is this price above or below the equilibrium price?

I think it is a price floor above the equilibrium price. The price is too high so that the suppliers will produce more than the consumption.