If We Say That a Price Is Too High to Clear

question 255

Multiple Choice

If we say that a price is too high to clear the market, we mean that

• A) quantity demanded exceeds quantity supplied.
• B) the equilibrium price is above the current price.
• C) quantity supplied exceeds quantity demanded.
• D) the price of the good is likely to rise.

---

Definitions:

Business Activity

The aggregate economic actions carried out by companies, including production, sales, and services, influencing the overall economic health.

Index of Leading Indicators

A composite of economic variables that predicts future economic activity, aiding in economic forecasting.

Recessions

Periods of temporary economic decline during which trade and industrial activities are reduced, generally identified by a fall in GDP in two successive quarters.

Recoveries

denotes the periods following recessions during which economic activity starts to increase and recover towards previous levels.