A Price Below the Equilibrium Price Results in

question 417

Multiple Choice

A price below the equilibrium price results in

• A) a surplus.
• B) a shortage.
• C) excess supply.
• D) a further price fall.

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Definitions:

Deportation

The official removal of an individual from a country in which they are not a citizen typically due to the violation of immigration or criminal laws.

Indirect Effects

Consequences of a business or economic action that are not immediate or direct but occur as a secondary effect.

Direct Effects

The immediate impact of an action or policy, without considering the subsequent or secondary outcomes.

Political Risk

The risk that political conditions in a host country might change, negatively affecting foreign businesses.