The quantity demanded of good X in a market is 400 units. The quantity of X supplied to the market is 800 units. The market price is $4. Which of the following statements are likely to be true?

The price needs to fall for the market to be in equilibrium.Correct
The elasticity of demand for good X is low.
There is a shortage in the market for good X.
Buyers will negotiate with sellers and bid up the price of good X.

Explanation
Since the quantity of good X supplied exceeds the quantity of good X demanded, there is a surplus in the market. The price needs to fall for the market to be in equilibrium.