What Happens If Price Falls Below the Market Clearing Price

question 105

Multiple Choice

What happens if price falls below the market clearing price?

• A) Demand shifts out.
• B) Supply shifts in.
• C) Quantity demanded decreases, quantity supplied increases, and a surplus results.
• D) Quantity demanded increases, quantity supplied decreases, and a shortage results.

---

Definitions:

Meta-analytic Review

A statistical method that combines the results of multiple studies on a particular topic to derive a comprehensive understanding of the evidence.

Therapy

A broad term for the treatment of health and behavioral issues, aimed at relieving symptoms and improving quality of life, which can be psychological or physical in nature.

Meta-analysis

A statistical technique that combines the results of multiple scientific studies on the same subject to derive a consolidated conclusion or insight.

Therapy

The treatment of psychological disorders or distress, often involving systematic interaction between a therapist and a client.