When There Is Excess Demand for a Product in a Market

question 227

Multiple Choice

When there is excess demand for a product in a market,

• A) price will tend to fall.
• B) price must be below the equilibrium price.
• C) price must be above the equilibrium price.
• D) producers will reduce output and sales will fall.

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Definitions:

Experience

encompasses the knowledge or practical wisdom gained from what one has observed, encountered, or undergone in life or in a particular field.

Sustainability

A commitment to a lifestyle that meets the needs of the present without compromising the ability of future generations to meet their own needs.

Marketing Mix

A set of controllable, tactical marketing tools that a company uses to produce a desired response from its target market; traditionally includes product, price, place, and promotion (the 4Ps).

Forecast Potential

The anticipated performance or success of a product, service, or business within a specific period.