Suppose the Equilibrium Price of Oranges Is $2

question 90

Multiple Choice

Suppose the equilibrium price of oranges is $2.00 per kilogram. If the actual price is above the equilibrium price, a

• A) surplus exists but nothing happens until either the demand or the supply changes.
• B) surplus exists and the price rises to restore equilibrium.
• C) shortage exists and the price rises to restore equilibrium.
• D) surplus exists and the price falls to restore equilibrium.
• E) shortage exists and the price falls to restore equilibrium.

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Definitions:

Thyroid Cartilage

A large cartilage of the larynx that is more prominent in males and is often referred to as the Adam's apple.

Elastic Cartilage

A type of flexible cartilage found in regions like the ears and epiglottis, characterized by its ability to return to its original shape after bending or folding.

Larynx

The voice box located in the throat, responsible for voice production, breathing, and protecting the trachea against food aspiration.

Compressed Air

Air that is pressurized and contained under greater pressure than the atmosphere, used in various tools, machines, and for cleaning or inflating purposes.