If the Quantity Demanded for Cars Is Lower Than the Quantity

question 84

Multiple Choice

If the quantity demanded for cars is lower than the quantity supplied,we can expect that:

• A)the price of cars will increase.
• B)the price of cars will not change.
• C)car manufacturers will increase their production of cars.
• D)the price of cars will decrease.

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Definitions:

Supply

The total amount of a specific good or service that is available to consumers in the market at a given time and price.

Demand

Pertains to the desire and capability of consumers to buy products and services at various price points.

Full Employment

A condition in an economy where all accessible labor resources are utilized in the most effective manner.

Expected Rate Of Profit

The anticipated return on an investment, considering potential risks and rewards.