What Happens If the Price of a Product Is Below

question 111

Multiple Choice

What happens if the price of a product is below the equilibrium price?

• A) The buyers will stop purchasing a "cheap" product.
• B) The producer will lower the price to make more profit.
• C) There will be an excess demand for the product.
• D) none of the above

Explain the characteristics and purposes of U.S. Treasury securities.

Recognize the maturity periods of money market instruments.

Understand the role of age as a determinant in savings behavior.

Identify different types of securities and their features.

---

Definitions:

Service Cost

The expense recognized by an employer for the portion of an employee's pension or post-retirement plan earned during the year.

Long-Term Service

Services provided over an extended period, often relating to contracts or employment agreements that require commitment beyond a single fiscal year.

Initial Direct Costs

Expenses that are directly associated with acquiring or starting a lease and are often included in the measurement of the lease asset.

Direct Cost

Costs that can be directly attributed to the production of specific goods or services, such as materials and labor.