When the Price Is Below the Equilibrium Price, the Quantity

question 452

Multiple Choice

When the price is below the equilibrium price, the quantity demanded

• A) is less than the equilibrium quantity and the quantity supplied also is less than the equilibrium quantity.
• B) is less than the equilibrium quantity but the quantity supplied exceeds the equilibrium quantity.
• C) exceeds the equilibrium quantity and the quantity supplied also exceeds the equilibrium quantity.
• D) exceeds the equilibrium quantity but the quantity supplied is less than the equilibrium quantity.

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Definitions:

Magnuson-Moss Act

Federal legislation in the United States that governs warranties on consumer products, aimed at protecting consumers from deceptive warranty practices.

Full Warranty

A comprehensive guarantee that a product will perform as advertised and the seller will repair or replace defective items at no charge.

Limited Warranty

A warranty with certain conditions and limitations on the parts, time, type of defect, or other factors warrantied.

Warranty

An assurance, either express or implied, by one party that the other party can rely on its representations of fact; in sales, a binding promise regarding a product in the event that the product does not meet the manufacturer’s or seller’s promises.