When the Price Is Less Than the Equilibrium Price

question 208

Multiple Choice

When the price is less than the equilibrium price,

• A) there will be a shortage.
• B) the price will be forced higher.
• C) some consumers will be willing to pay a price higher than the prevailing price.
• D) All of the above answers are correct.

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Definitions:

Sole Proprietorship

A form of business organization where a single individual owns and operates the business, bearing full responsibility for its debts and liabilities.

Capital Intensive

Describing a business that requires significant investment in capital assets like machinery and equipment to produce goods or services.

Customer Relationship

The management of interactions and engagements between a business and its customers, focusing on long-term relationship building.

Tangible Property

Physical assets that can be touched and seen, such as real estate, equipment, and inventory.