When a Surplus Exists in a Market, We Know That

question 247

Multiple Choice

When a surplus exists in a market, we know that the actual price is:

• A) above equilibrium price, and quantity supplied is greater than quantity demanded.
• B) above equilibrium price, and quantity demanded is greater than quantity supplied.
• C) below equilibrium price, and quantity demanded is greater than quantity supplied.
• D) below equilibrium price, and quantity supplied is greater than quantity demanded.

---

Definitions:

Offeree's Counteroffer

A response to an original offer in which the offeree proposes a different agreement, effectively rejecting the initial offer.

Offeror's Revocation

The withdrawal of an offer by the offeror that can occur any time before it is accepted by the offeree, terminating the offer.

Contractual Intent

The clear intention of the parties to a contract to create a legally binding agreement.

Definite

Clearly stated or decided; not vague or doubtful, often referring to terms or conditions that are explicitly specified.