If, for a Product, the Quantity Supplied Exceeds the Quantity

question 201

Multiple Choice

If, for a product, the quantity supplied exceeds the quantity demanded, the market price will fall until

• A)the quantity demanded exceeds the quantity supplied. The market will then be in equilibrium.
• B)quantity demanded equals quantity supplied. The equilibrium price will then be lower than the market price.
• C)all consumers will be able to afford the product.
• D)quantity demanded equals quantity supplied. The market price will then equal the equilibrium price.

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Definitions:

Capital Account Balances

The value held within capital accounts, reflecting the total equity contributions and adjustments from income, losses, and withdrawals by owners.

Noncash Assets

Assets that cannot be easily converted into cash, such as real estate, equipment, and intellectual property.

Liquidation Expenses

Fees and costs associated with dissolving a corporation, including asset sales, payments to creditors, and legal expenses to formally close the business.

Noncash Assets

Assets that are not in the form of cash or will not be turned into cash within a year, such as property, plant, and equipment.