If the Price in the Market for a Commodity Is

question 5

Multiple Choice

If the price in the market for a commodity is above the market equilibrium price, the:

• A) price will remain unchanged.
• B) price will rise to clear the market.
• C) quantity supplied exceeds the quantity demanded.
• D) quantity demanded exceeds the quantity supplied.

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Definitions:

Demand Determined

A situation where the quantity of a good or service bought is strictly influenced by consumer demand.

MRP

Marginal Revenue Product, which is the additional revenue generated from employing one more unit of a resource.

Productivity

A measure of the efficiency of production, often expressed as the ratio of output to input within a specific period.

Marginal Revenue Product

The additional revenue a firm generates from employing one more unit of input, such as labor or capital.