When the Price of a Good Is

question 100

Multiple Choice

When the price of a good is

• A)above the equilibrium price, quantity demanded exceeds quantity supplied and price rises.
• B)below the equilibrium price, quantity demanded exceeds quantity supplied and price falls.
• C)below the equilibrium price, quantity supplied exceeds quantity demanded and price rises.
• D)above the equilibrium price, quantity supplied exceeds quantity demanded and price falls.

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Definitions:

Offeror

The party in a contract negotiation who presents the offer to enter into an agreement.

Offeree

The person to whom an offer is made in a contract situation.

Capacity

The legal ability of an individual or organization to enter into a contract, including being of the required age and sound mind.

Exemption Clauses

Provisions in a contract that limit or exclude one party's liability for certain breaches or damages.