The Price of a Good Will Fall If

question 22

Multiple Choice

The price of a good will fall if

• A) the price of a complement in consumption falls.
• B) there is a surplus at the current price.
• C) the quantity demanded exceeds the quantity supplied.
• D) the current price is less than the equilibrium price.

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Definitions:

Firm

A business organization or entity engaged in commercial, industrial, or professional activities, designed to provide goods or services for profit.

Hire

The act of giving someone a job; it involves agreeing to employ an individual under specified terms.

Marginal Product

The rise in production resulting from one more unit of input, while keeping all other inputs unchanged.

Units of Output

The quantity of goods or services produced by a business, factory, or individual within a certain timeframe.