What Happens If the Price of a Product Is Below

question 137

Multiple Choice

What happens if the price of a product is below the equilibrium price?

• A) The buyers will stop purchasing a "cheap" product.
• B) The producer will lower the price to sell more product.
• C) There will be an excess demand for the product.
• D) There will be a surplus of the product.

---

Definitions:

Buffer

Buffer is a protective barrier or cushioning mechanism that mitigates the negative impact of environmental changes or stressors, often used in the context of stress management.

Stress

A psychological and physical response to perceived challenges or threats, which can affect an individual's health, well-being, and performance.

Recession

A period of temporary economic decline during which trade and industrial activities are reduced, generally identified by a fall in GDP in two successive quarters.

False Front

Presenting a deceptive outward appearance or attitude that hides one's true self or feelings.