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.

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Definitions:

Federal Regulation

Laws and rules established by the federal government to govern the conduct of individuals, businesses, and other entities.

Inventory

The complete list of items such as property, goods in stock, or the contents of a building.

Consumer Goods

Products bought for personal or household use rather than for manufacturing or resale purposes.

Farm Products

Goods produced by agricultural activities, including crops, livestock, and the products derived from them.