What Occurs When the Quantity Demanded Exceeds the Quantity Supplied

question 1

Multiple Choice

What occurs when the quantity demanded exceeds the quantity supplied?

• A) demand deficit
• B) surplus
• C) equilibrium point
• D) shortage
• E) supply schedule

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Definitions:

Internal Rate

Also known as the internal rate of return (IRR), it is the discount rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero.