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:

Investments

Assets purchased with the goal of generating income or appreciating in value over time.

Consultant's Fee

The amount charged by a consultant for their professional advice or services.

Computer Equipment

Tangible assets related to computers and technology used in the operational activities of a business, such as servers, desktops, and peripherals.

Capital Expenditures

Investments in physical assets like property, plant, and equipment, which are expected to improve a company’s future productive capacity.