When the Price Is Higher Than the Equilibrium Price

question 43

Multiple Choice

When the price is higher than the equilibrium price:

• A)suppliers will reduce prices to try to clear the market
• B)suppliers will increase their prices to clear the market
• C)buyers will change their tastes and desire more of the good
• D)more sellers will enter the market as they expect prices to go higher

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Definitions:

Reaching Over

The act of extending an arm or part of the body over an obstacle or towards something, often implying exertion or stretching.

Amount of Challenge

The level of difficulty or demand that a task or goal poses to an individual or group.

Difficulty of Tasks

Refers to the complexity and challenge level inherent in tasks or assignments, which can affect motivation, performance, and the strategies employed to achieve objectives.

Immediacy of Feedback

The concept of providing prompt responses to behaviors or performances, which helps in quickly correcting or reinforcing actions.