If There Is a Surplus of a Good, the Quantity

question 51

Multiple Choice

If there is a surplus of a good, the quantity demanded is ________ the quantity supplied, and the price will ________.

• A) greater than; fall
• B) less than; fall
• C) equal to; fall
• D) greater than; rise
• E) less than; rise

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Definitions:

Bounded Rationality

The concept that decision-making is limited by the information available, the cognitive limitations of individuals, and the finite amount of time available to make a decision.

Budget Increase

An upward adjustment in the amount of money allocated for specific purposes, often reflecting growth or expansion in operations or projects.

Behavioural Decision Model

suggests that decision-making processes are influenced by cognitive biases, emotions, and social influences rather than being purely rational or logical.

Risk And Uncertainty

The exposure to the possibility of loss or damage and the lack of predictability in events or outcomes, respectively.