Figure 4-19 -Refer to Figure 4-19.If Price in This Market Is Currently

question 53

Multiple Choice

Figure 4-19
-Refer to Figure 4-19.If price in this market is currently $14,then there would be a(n)

• A)surplus of 20 units.The law of supply and demand predicts that the price will rise from $14 to a higher price.
• B)excess supply of 20 units.The law of supply and demand predicts that the price will fall from $14 to a lower price.
• C)surplus of 40 units.The law of supply and demand predicts that the price will rise from $14 to a higher price.
• D)excess supply of 40 units.The law of supply and demand predicts that the price will fall from $14 to a lower price.

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Definitions:

Price Level

The average of current prices across the entire spectrum of goods and services produced in the economy, which can indicate the cost of living and inflation.

Variable Input

Inputs or resources whose quantity can be changed in the short term to adjust the level of output.

Wage Rate

The amount of compensation individuals receive per unit of time for their labor, often expressed per hour or year.