Assume that each seller sells at most one giant cinnamon roll to one buyer, so that for a transaction to occur, one seller must match up with one buyer. If the price is $5, there is an excess of ____, which will cause the price to _____.

Respuesta :

Answer: . If the price is $5, there is an excess of BUYERS, which will cause the price to INCREASE.

Explanation: When there is an excess of buyers with few suppliers or sellers, it will automatically create an increase in demand. An increase in demand will cause prices of goods to increase.

In the same vein, when there are excess sellers at a given price, it would force the prices of goods to decrease.