When the Price of a Good Is Above Its Equilibrium

question 149

Multiple Choice

When the price of a good is above its equilibrium value,

• A) consumers will bid the price up.
• B) excess demand will occur.
• C) it will tend to stay above the equilibrium value.
• D) suppliers will notice their inventories are shrinking.
• E) suppliers will lower the price.

Distinguish between objective and projective tests in personality assessment.

Understand the concept of obedience and the factors that influence it, as exemplified by Milgram's study.

Recognize the processes and theories related to social influence and persuasion.

Identify and explain the process of attribution in understanding social behavior.

---

Definitions:

Abatement

The reduction, decrease, or relief from severity, intensity, or intensity of something, often used in the context of tax, rent, or environmental hazards.

Ademption

The situation in wills and estates where a specific bequest cannot be distributed because the item no longer exists in the decedent's estate.

Legacies

Gifts or inheritances left to someone in a will.

Grantor Trust

A grantor trust is a legal entity in which the trust's creator maintains control over the assets and income, often leading to the income being taxed directly to the creator.