What Is Likely to Happen If a Producer Incorrectly Sets

Multiple Choice

What is likely to happen if a producer incorrectly sets the price of its product too high?

A) A shortage (excess demand) will result, and consumers will bid the price down to equilibrium.
B) A surplus (excess supply) will result, and the additional goods in inventory will prompt the producer to lower the price.
C) A shortage (excess demand) will result, and consumers will bid the price up to equilibrium.
D) A surplus (excess supply) will result, and the additional goods in inventory will prompt the producer to restrict output until sales increase.