What Is Likely to Happen If a Producer Incorrectly Sets

question 170

Multiple Choice

What is likely to happen if a producer incorrectly sets the price of its product too high?

• A) A shortage (excess demand) will result, and consumers will bid the price down to equilibrium.
• B) A surplus (excess supply) will result, and the additional goods in inventory will prompt the producer to lower the price.
• C) A shortage (excess demand) will result, and consumers will bid the price up to equilibrium.
• D) A surplus (excess supply) will result, and the additional goods in inventory will prompt the producer to restrict output until sales increase.

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Definitions:

Social Cues

Nonverbal indicators that guide social interactions, such as facial expressions, body language, and tone of voice.

Self-Regulation

The technique individuals use to regulate their cognitive activities, emotional states, and conduct in order to accomplish enduring aims.

Cooperation

The act of working together towards a common goal or benefit, often involving mutual assistance in a task or coordination of efforts.

Social Rejection

The act of pushing someone away or excluding them from a social group.