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

Caroline Short

Social Studies

2 October, 02:03

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.

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Jovanni Blevins · 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.