If the Price of a Product Does Not Change Immediately,which

question 134

Multiple Choice

If the price of a product does not change immediately,which of the following will cause an initial surplus of a product?

• A)An increase in the demand or an increase in the supply.
• B)A decrease in the demand or a decrease in the supply.
• C)An increase in the demand or a decrease in the supply.
• D)A decrease in the demand or an increase in the supply.
• E)A change in the quantity demanded.

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Definitions:

Excess Supply

A market condition where the quantity of a commodity available for sale exceeds the quantity demanded at the current price.

Producer Surplus

The difference between what producers are willing to accept for a good or service and what they actually receive, representing their gain.

Producer Surplus

The difference between what producers are willing to accept for a product and the amount they actually receive.

Total Revenue

The overall amount of money generated by a firm from the sale of its goods and services, calculated as the unit price multiplied by the quantity sold.