If the Price of a Good Increases and Is Above

Multiple Choice

If the price of a good increases and is above the equilibrium price, then:

A) suppliers' inventories will build up, they will reduce output, and lower prices.
B) demand will exceed supply and there will be a shortage in the market.
C) the demand curve will shift to the left until equilibrium is established at the new higher prices.
D) the supply curve will shift to the right until equilibrium is established at the new higher price.
E) consumers will bid down the good's price, but there will be no reduction in output.