If the Price Is Above the Equilibrium Price,then

question 44

Multiple Choice

If the price is above the equilibrium price,then

• A)none of the good will be sold.
• B)the price must rise further to reach the new market equilibrium.
• C)a surplus exists.
• D)a shortage exists.
• E)price will not change;producers will cut back production until the market is in equilibrium.

---

Definitions:

Total Risk

The complete range of risks associated with an investment, including both systematic risk (market related) and unsystematic risk (company or industry specific).

Standard Deviation

A measure of the dispersion or variability of a set of data points from its mean, often used in finance to gauge investment risk.

Risk Premium

The extra return above the risk-free rate that investors require to compensate them for holding a risky asset.

Bearing Risk

The act of accepting potential loss from uncertainty in investment or business operations.