In Competitive Markets, a Surplus or Shortage Will

question 217

Multiple Choice

In competitive markets, a surplus or shortage will

• A) never exist because the markets are always at equilibrium.
• B) cause changes in the quantities demanded and supplied that tend to eliminate the surplus or shortage.
• C) cause shifts in the demand and supply curves that tend to eliminate the surplus or shortage.
• D) cause changes in the quantities demanded and supplied that tend to intensify the surplus or shortage.

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Definitions:

Maslow Hierarchy

A theory of human motivation that ranks human needs in a pyramid structure, from basic physiological needs at the bottom to self-actualization at the top.

Self-actualization

The realization or fulfillment of one's talents and potentialities, considered as a drive or need present in everyone.

Physiological

Relating to the branch of biology that deals with the normal functions of living organisms and their parts.

Personal

Relating to or affecting an individual directly; not related to or representative of anything larger or external to oneself.