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After Watching Coverage of the Olympics on Television Recently,Lynn and Susan

question 17

Multiple Choice

After watching coverage of the Olympics on television recently,Lynn and Susan have been staging their own "summer games." Which of the following best accounts for their behavior?


Definitions:

Lower Cost

Refers to the reduction in expenses required to produce goods and services, improving profitability.

Surplus

An amount of something left over when requirements have been met; in economics, it typically refers to excess supply over demand.

Shortage

A market condition whereby the request for a service or product goes beyond what is readily available.

Equilibrium Quantity

The quantity of goods or services supplied and demanded at the point where supply and demand curves intersect, resulting in market equilibrium.

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