If a Seller Facing Excess Demand Is Unable to Raise

question 249

Multiple Choice

If a seller facing excess demand is unable to raise the price of the good due to a price ceiling, the seller might:

• A) increase the quantity supplied of the product.
• B) decrease the price of the product.
• C) increase the quality of the product.
• D) decrease the level of service for that product.

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Definitions:

Capital Intensive

Industries or processes that require large amounts of capital investment in heavy machinery or equipment rather than labor.

Alternative Technologies

Refers to various options available for achieving a similar goal, especially in the context of energy sources, manufacturing processes, or digital solutions.

Labor Costs

The total expense incurred by employers for the wages, benefits, and taxes associated with the workforce.

Capital-Intensive

A production process that requires a higher ratio of capital (machinery, equipment) to labor.