-When the Price of a Good Is Below the Equilibrium

question 135

Multiple Choice

-When the price of a good is below the equilibrium price,

• A)suppliers are unable to sell as many units as they want; they will cut output and lower prices.
• B)suppliers can sell as many units as they can produce; they will increase production and raise prices.
• C)the demand curve shifts down to reach an equilibrium price.
• D)the supply curve will shift up to reach an equilibrium price.

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Definitions:

Online Trading

The act of buying and selling financial products through an online trading platform.

Market Savvy

Possessing practical knowledge or understanding of the market, often used in the context of making smart business or investment decisions.

Day Trader

An investor who buys and sells securities within the same trading day, often taking advantage of small price movements.

Random Sampling

A statistical method for selecting a subset of individuals from a larger population in such a way that each individual has an equal chance of being chosen.