When Quantity Demanded of a Good Is Less Than the Quantity

question 21

Multiple Choice

When quantity demanded of a good is less than the quantity supplied at the prevailing market price,

• A)the market is in equilibrium
• B)the price of the good tends to rise
• C)the price of the good tends to fall
• D)the demand curve shifts rightward until the surplus is eliminated
• E)the supply curve shifts leftward until the shortage is eliminated

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Definitions:

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Inches

A unit of measurement equal to 1/12th of a foot, used primarily in the United States and the United Kingdom for measuring length.

Scatter Diagram

A graphical representation used to show the relationship between two variables by displaying dots to represent individual pieces of data.

Linear Model

A statistical approach to model the relationship between a dependent variable and one or more independent variables by fitting a linear equation to observed data.