If the Price Is Below the Equilibrium Price in the Market

question 119

Multiple Choice

If the price is below the equilibrium price in the market for grapefruit,assuming a positively sloped supply curve and a negatively sloped demand curve,total surplus:

• A)will be greater than if price were at equilibrium.
• B)will be less than if price were at equilibrium.
• C)will be the same as if price were at equilibrium.
• D)may be different than if price were at equilibrium,but we cannot determine this without more information.

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Definitions:

Antedated Check

A check written with a date earlier than the date on which it was actually written.

Holder in Due Course

A legal term for a person who has acquired a negotiable instrument in good faith and for value, and thus has certain rights above the original payee.

Instrument Overdue

Refers to a financial instrument, like a check or promissory note, that has not been paid or honored by its due date.

Personal Defenses

Legal defenses used in contract law that relate to the specific circumstances or relationships between the parties involved, affecting the enforceability of the contract.