PPSCFPSCNTSPakistan govt jobs
- Subject
- Supply and Demandeconomics-mcqs › supply-and-demand
- Published
- 29 May 2019
- Last updated
- 28 May 2026
In an unregulated market, what typically happens when there is a surplus of demand over supply?
Multiple choice question for Supply and Demand. Select an option, then review the explanation below.
Explanation
When demand exceeds supply in a free market, the imbalance usually causes prices to go up as buyers compete for limited goods.
More Supply and Demand MCQs
Practice related questions from the same subject.
- 1.What is the typical shape of a demand curve?
- 2.What term describes a company earning profits beyond its normal profit level?
- 3.How does an increase in marginal cost affect output, and how does an increase in marginal revenue impact output?
- 4.Marginal revenue refers to the ________ resulting from producing an additional ________ of output.
- 5.What are firms generally assumed to do with their costs and profits?