If the Quantity Demanded Exceeds the Quantity Supplied, Then There

question 378

Multiple Choice

If the quantity demanded exceeds the quantity supplied, then there is

• A) a shortage and the price is below the equilibrium price.
• B) a shortage and the price is above the equilibrium price.
• C) a surplus and the price is below the equilibrium price.
• D) a surplus and the price is above the equilibrium price.

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Definitions:

Manufacturer's Inventory

Includes raw materials, work in process, and finished goods held by a manufacturer, representing various stages of production.

Raw Materials Inventory

The total cost of all the components that will be used in the production of goods but have not yet been used.

Days' Sales

A financial metric measuring the number of days it takes for a company to convert its inventory into sales.

Raw Materials Used

The basic substances in their natural, modified, or semi-processed state used as inputs for production.