When There Is a Surplus of a Good

question 224

Multiple Choice

When there is a surplus of a good:

• A) sellers will lower the price in order to increase quantity demanded.
• B) sellers will raise the price in order to decrease quantity demanded.
• C) sellers will compete with buyers.
• D) this is an indication the buyers do not value the good.

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Definitions:

Circular Mil

An area measure of wire determined by squaring the diameter of the wire in mils (1 mil = 0.001 inch). Example: A wire with a diameter of 0.020 inch would have a circular mil area of 400 cmil (20 x 20 = 400).

Radius

A straight line from the center to the circumference of a circle or sphere.

Diameter

A straight line passing from side to side through the center of a body or figure, especially a circle or sphere, measuring the overall distance across.

Standard Temperature

A baseline temperature used in scientific calculations, typically defined as 0°C or 273.15K.