Suppose the price of a DVD is 15 per unit At that price cons

Suppose the price of a DVD is $15 per unit. At that price, consumers wish to purchase 6,000 units weekly and producers wish to sell 4,000 units weekly. In this situation,

a) unsatisfied consumers will bid up the market price.
b) the market price will fall because producers are unsatisfied.

c) the price will rise and the demand will fall to bring the market to equilibrium.

d) supply will increase by 2,000 units in order to satisfy consumers.

Solution

c) the price will rise and the demand will fall to bring the market to equilibrium.

as initially demand is greater than supply , excess demand will lead to increase in price which will subsequently lead to decrease in demand and demand and supply will become equal and equilibrium will be achieved.