Petrol is priced below the crossing level, so producers cut output. Th…

Question

Petrol is priced below the crossing level, so producers cut output. The price then:

Accepted Answer

B. Rises

1. Buyers want more than sellers will make.
2. Competition among buyers bids the price up.
3. So the price rises toward equilibrium.
_Source: OpenStax Principles of Microeconomics 3e, Chapter 3, Demand and Supply._

Answer

Rolls

Answer

Ruins

Answer

Rests

Petrol is priced below the crossing level, so producers cut output. The price then:

Keep practising Demand Supply and Equilibrium