If the Price of a Good Is Below the Equilibrium

question 29

Multiple Choice

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

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

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Definitions:

Amygdala

A region of the brain involved in experiencing emotions, particularly fear, and processing emotional memories.

Somatic Nervous System

A subdivision of the peripheral nervous system (PNS); it transmits sensory signals and motor signals back and forth between the central nervous system (CNS) and the skin, muscles, and joints.

Muscles and Joints

Components of the musculoskeletal system, with muscles providing the force to move the body and joints allowing for motion between bones.

Parietal Lobes

Regions of the brain located behind the frontal lobes, involved in processing sensory information and spatial orientation.