If the Market Price Is Higher Than the Equilibrium Price

Multiple Choice

If the market price is higher than the equilibrium price a:

A) shortage exists and the equilibrium price will rise until it equals the market price and the shortage is eliminated.
B) surplus exists and the market price will fall until it equals the equilibrium price and the surplus is eliminated.
C) surplus exists and the equilibrium price will rise until it equals the market price and the surplus is eliminated.
D) shortage exists and the market price will fall until it equals the equilibrium price and the shortage is eliminated.