In a Purely Competitive Market, How Would a Surplus of a Product

question 15

Multiple Choice

In a purely competitive market, how would a surplus of a product be eliminated?

• A) The price of the product would decrease.
• B) The price of the product would increase.
• C) The quantity supplied of the product would increase.
• D) The quantity demanded for the product would decrease.

---

Definitions:

Big Business

Large-scale or major corporations and enterprises that have significant influence on the economy, often with considerable power and resources.

Debt

A sum of money that is owed or due.

Thrift

The practice of saving money and spending it wisely, often associated with frugal living.

Reconstruction Finance Corporation

Federal program established in 1932 under President Herbert Hoover to loan money to banks and other institutions to help them avert bankruptcy.