When the Price of a Good Is Higher Than the Equilibrium

question 9

Multiple Choice

When the price of a good is higher than the equilibrium price,

• A)a shortage will exist.
• B)buyers desire to purchase more than is produced.
• C)sellers desire to produce and sell more than buyers wish to purchase.
• D)quantity demanded exceeds quantity supplied.

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Definitions:

Assignments

The process of transferring rights or duties from one party to another, often used in contracts, leases, or in the context of educational tasks.

Obligor

An individual or entity legally bound to provide a benefit or payment to another in accordance with a contract or legal agreement.

Materially Increase

Refers to a significant rise in the size, amount, or extent of something, often in a contractual or financial context.

Setoff

is a legal mechanism allowing a debtor to reduce the amount they owe to a creditor by any sum the creditor owes to them.