Figure 4-21 -At Price P₁ in Figure 4-21, What Will Tend to What

question 68

Multiple Choice

Figure 4-21

-At price P₁ in Figure 4-21, what will tend to happen?

• A)There will be a shortage, and the price will fall.
• B)There will be a shortage, and the price will rise.
• C)There will be a surplus, and the price will rise.
• D)There will be a surplus, and the price will fall.
• E)Equilibrium will occur in the market.

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Definitions:

Form of Capital

Various types of economic resources used by businesses to fund and operate their activities, including financial, social, or physical assets.

Technology

The use of scientific understanding to achieve practical goals, particularly within industrial sectors.

Factors of Production

The resources used in the production of goods and services, traditionally classified into land, labor, capital, and sometimes entrepreneurship.