If Aggregate Quantity Demanded Is Greater Than Aggregate Quantity Supplied

question 12

Multiple Choice

If aggregate quantity demanded is greater than aggregate quantity supplied at a particular price level,then

• A) consumers will bid prices upward,and a greater quantity of output will be supplied.
• B) the shortage will likely be eliminated.
• C) a and b
• D) none of the above

---

Definitions:

Service Business

A business that provides intangible products or services to customers, often involving skilled labor or professional expertise.

Gross Profit

The difference between revenue and the cost of goods sold, before accounting for certain other costs such as operating expenses.

Periodic Inventory System

An accounting method where inventory and its cost of goods sold are determined at the end of an accounting period based on a physical count.

Balance Sheet

A financial statement that provides a snapshot of a company’s financial condition at a specific point in time, detailing assets, liabilities, and shareholders' equity.