The Graph Shown Depicts the Market for a Good

question 163

Multiple Choice

The graph shown depicts the market for a good. What state is this market in if the price of the good is $5?

• A) There is a shortage (excess demand), signaling that sellers should leave the market.
• B) There is a shortage (excess demand), signaling that buyers should bid up the price.
• C) There is a surplus (excess supply), signaling that sellers should drop their price.
• D) There is a surplus (excess supply), signaling that buyers should bid up the price.

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Definitions:

Objective

A specific result that a person or system aims to achieve within a time frame and with available resources.

Goal

A desired result or achievement toward which effort is directed; an aim or end.

Core Benefit Proposition

The fundamental value or advantage that a consumer receives from a product or service, serving as the primary reason for making a purchase.

Sustainability Doctrine

A set of principles focusing on meeting current needs without compromising the ability of future generations to meet theirs, especially regarding environmental conservation.