Multiple choice

A local grocery storekeeper orders 100 cans of soya milk every week and sells them at the price of Rs. 60 per can. At the end of first week, he has sold only 50 cans. What economic situation is the storekeeper facing and what will be the effect of this situation on the price in order to attain equilibrium?

  1. Shortage; price will rise

  2. Surplus; price will fall

  3. Shortage; price will fall

  4. Surplus; price will rise

  5. Equilibrium; no changes in price

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

This answer is right because in the question, there is remaining stock, which is yet to be sold.