If the Price of a Good Increases and Is Above

question 24

Multiple Choice

If the price of a good increases and is above the equilibrium price, then:

• A) suppliers' inventories will build up, they will reduce output, and lower prices.
• B) demand will exceed supply and there will be a shortage in the market.
• C) the demand curve will shift to the left until equilibrium is established at the new higher prices.
• D) the supply curve will shift to the right until equilibrium is established at the new higher price.
• E) consumers will bid down the good's price, but there will be no reduction in output.

Examine the influence of genetic inheritance and environmental factors (nature and nurture) on development.

Analyze the impact of early behavior on adult outcomes, considering the stability/change dichotomy.

Differentiate between the gradual and abrupt changes that occur during life-span development.

Understand the development and function of the placenta and the concept of teratogens in prenatal development.

---

Definitions:

Differentiated Products

Goods or services that are distinguished from others by quality, branding, or other features, leading to non-price competition among firms.

Collude

When two or more firms work together to set prices, limit supply, or engage in other practices to restrict competition and manipulate market outcomes.

Perfect Competitors

In a perfectly competitive market, firms that have no market power and cannot set prices, with many buyers and sellers trading identical products.

Non-price Competition

A marketing strategy where a company tries to distinguish its product or service from competing products based on attributes other than price.