Excess Demand Is the Same Thing as

question 13

Multiple Choice

Excess demand is the same thing as

• A)the area to the left of the equilibrium price on a supply and demand diagram.
• B)quantity demanded exceeding quantity supplied.
• C)quantity supplied exceeding quantity demanded.
• D)excess supply.
• E)the area to the right of the equilibrium price on a supply and demand diagram.

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Definitions:

Socially Efficient

A situation in which resources are allocated in the most beneficial way from the perspective of society as a whole, considering both private and external costs and benefits.

Individual Resident

A person who inhabits a particular place, typically referring to living in a specific geographic area or dwelling.

Hire

The action of providing employment to someone; the act of engaging an individual for a job.

Marginal Cost

The additional cost resulting from the production of one more unit of a product or service.