If the Quantity Demanded Exceeds the Quantity Supplied, Then There

question 517

Multiple Choice

If the quantity demanded exceeds the quantity supplied, then there is

• A) a surplus and the price is below the equilibrium price.
• B) a surplus and the price is above the equilibrium price.
• C) a shortage and the price is below the equilibrium price.
• D) a shortage and the price is above the equilibrium price.

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Definitions:

Commercially Reasonable Manner

A standard requiring that actions taken in a business context comply with what a reasonable person would consider appropriate and fair in the same circumstances.

Merchant

An individual or company engaged in the buying and selling of goods or services in commerce, especially one dealing in a specific commodity or operating in a particular sector.

Special Knowledge

Extraordinary or advanced understanding and information in a particular field or subject, beyond that of the average person.

Unconscionable Clause

A term in a contract deemed so unjust that it is unenforceable under the law.