A-LevelEconomicsThe price system and the microeconomy9708/12 · May/June 2021 · Q81 Mark
A market is in equilibrium with 100 units of the product sold at a price of US10 each. The price elasticity of supply for the product is +2.0 and the price elasticity of demand is –1.0. What will be the state of the market if a minimum price of US11 is imposed?
Aan excess demand of 10 units
Ban excess demand of 30 units
Can excess supply of 20 units
Dan excess supply of 30 units
✓ Correct answer
D: an excess supply of 30 units
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