Assume That There Is a Surplus in the Market for Hybrid

question 183

Multiple Choice

Assume that there is a surplus in the market for hybrid automobiles.Which of the following statements correctly describes this situation?

• A)The supply of hybrid automobiles is greater than the demand for hybrid automobiles.
• B)Some consumers will be unable to obtain hybrid automobiles at the market price and will have an incentive to offer to buy the product at a higher price.
• C)The price of hybrid automobiles will fall in response to the surplus; as the price falls the quantity demanded will increase and the quantity supplied will decrease.
• D)The surplus will cause an increase in the equilibrium price of hybrid automobiles.

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Definitions:

Vestibular Organs

The sensory structures in the inner ear that are responsible for maintaining balance and spatial orientation by detecting changes in head movements.

Sensory Conflict Theory

An explanation of motion sickness in which the information from the eyes conflicts with the information from the vestibular senses, resulting in dizziness, nausea, and other physical discomfort.

Motion Sickness

A condition characterized by a feeling of nausea and, in some cases, dizziness, caused by movement during travel.

Vestibular Senses

The sensory system that contributes to balance and spatial orientation, located in the inner ear.