Question

Which of the following statements is false?

Even at equilibrium in a market, scarcity exists.

If there is a shortage of 100 units at a price of $2 per unit, the shortage will be greater than 100 units at a price of $1 per unit.

If there is a surplus of 30 units at a price of $3, the surplus will be less than 30 units (or even nonexistent) at a price of $2.

If there is a surplus, suppliers will not be able to sell all they had hoped to sell at a particular price.

none of the above.

Answer 1

The statement

If there is a shortage of 100 units at a price of $2 per unit, the shortage will be greater than 100 units at a price of $1 per unit.

This is false.

Explanation: Surplus is when there is excess of production or supply of a commodity. Here, since price is falling that is, it is falling from 100 units at a price of $2 per unit to 100 units at a price of $1, so it will increase the demand for this good ( at lower price, demand of the product will increase) and therefore surplus will be less as more quantity will be sold.