The Price of a Good Will Tend to Fall When

question 273

Multiple Choice

The price of a good will tend to fall when

• A) there is excess demand for the good.
• B) there is excess supply of the good.
• C) demand for the good increases.
• D) the supply of the good decreases.

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Definitions:

Average Variable Cost

The total variable cost of production divided by the quantity of output produced, reflecting the average cost of each unit of output on variable factors.

Exclusive Right

A legal entitlement granting someone the sole authority to engage in a certain activity or use a specific property.

Profit

The financial gain obtained when the total revenues generated from selling goods or services exceed the total costs and expenses to produce them.

Exclusive Right

Exclusive Right is a legal entitlement that grants the holder the sole privilege to perform, use, or sell a particular service, product, or piece of intellectual property.