If the Quantity of Textbooks Supplied Is 10,000 Per Year

question 95

Multiple Choice

If the quantity of textbooks supplied is 10,000 per year and the quantity of textbooks demanded is 8,000 per year, there is a _______ in the market and the price will _______ .

• A) shortage; rise
• B) shortage; fall
• C) surplus; fall
• D) surplus; rise

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Definitions:

Sales Price

The amount of money a buyer pays to purchase a product or service from a seller.

Contribution Margin Ratio

A ratio that measures the portion of sales revenue that exceeds variable costs, indicating how sales affect profitability.