If the Price of a Good Is Above the Equilibrium

question 34

Multiple Choice

If the price of a good is above the equilibrium price,

• A) there is a surplus and the price will rise.
• B) there is a shortage and the price will fall.
• C) there is a shortage and the price will rise.
• D) the quantity demanded is equal to the quantity supplied and the price remains unchanged.
• E) there is a surplus and the price will fall.

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Definitions:

Equipment

Durable goods used in the operation of a business, not intended for sale, often contributing to the production of other goods or services.

Property Taxes

Taxes levied by local governments on real estate based on the property's value, used to fund public services such as schools and infrastructure.

Estimated Monthly Amount

A projection of the monetary value expected for transactions or activities on a monthly basis.

Balance Sheet

A financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time, providing a snapshot of its financial position.