If the Price Is Above the Equilibrium Price,then

question 44

Multiple Choice

If the price is above the equilibrium price,then

• A)none of the good will be sold.
• B)the price must rise further to reach the new market equilibrium.
• C)a surplus exists.
• D)a shortage exists.
• E)price will not change;producers will cut back production until the market is in equilibrium.

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Definitions:

International Trade Disputes

Conflicts that arise between countries or businesses in different countries regarding the exchange of goods, services, and intellectual property.

Trade Negotiations

The process where countries or organizations discuss and agree on the terms of trade between them, including tariffs and trade barriers.

Distributor

An entity that buys products in bulk from manufacturers and sells them to retailers or directly to consumers.

Foreign Market

A marketplace outside a company's home country where it can engage in trade or investment, offering opportunities for growth but also posing challenges like cultural and legal differences.