Suppose That at the Current Price, the Quantity Supplied of a Product

question 160

Multiple Choice

Suppose that at the current price, the quantity supplied of a product is 5 units and the quantity demanded is 8 units. In this market, there is a _____ of this product and the price should _____.

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

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Definitions:

Indorsers

Parties who sign a negotiable instrument, such as a check or promissory note, over to someone else, thus transferring their rights related to the instrument.

Acceleration Clause

(1) A clause in an installment contract that provides for all future payments to become due immediately on the failure to tender timely payments or on the occurrence of a specified event. (2) A clause in a mortgage loan contract that makes the entire loan balance become due if the borrower misses or is late making monthly mortgage payments.

Negotiable

A term referring to a document or financial instrument that can be transferred from one party to another, providing the holder with certain rights.

Exchange

A marketplace or platform where goods, services, or financial instruments are traded between parties.