If the Price of a Good Is Below the Equilibrium

question 105

Multiple Choice

If the price of a good is below the equilibrium price,then

• A) the government needs to set a higher price.
• B) firms,dissatisfied with growing inventories,will raise the price.
• C) consumers,wanting to ensure they acquire the good,will bid the price higher.
• D) the government needs to set a lower price.
• E) firms,dissatisfied with growing inventories,will lower the price.

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Definitions:

Fight-or-Flight

A physiological response to perceived danger or threat, preparing the body to fight or flee from the threatening situation.

Tend-and-Befriend

A theory suggesting that in response to stress, individuals, especially women, are predisposed to caring for offspring and seeking social support.

Continuum

A continuous sequence in which adjacent elements are not perceptibly different from each other, although the extremes are quite distinct.

Homeostasis

The ideal level of bodily functions.