Question

At any price higher than the market-clearing price, the quantity that buyers want to buy is less than the quantity that sellers want to sell.

• A. True
• B. False

Answer 1

The correct option is A

True

True. At any price higher than the market-clearing price, the quantity that buyers want to buy is less than the quantity that sellers want to sell; this creates incentives for individual sellers to lower their prices and for individual buyers to seek out lower prices.