The Market System Automatically Corrects a Surplus Condition in a Competitive

question 32

Multiple Choice

The market system automatically corrects a surplus condition in a competitive market by

• A) raising the price of the commodity in question while increasing the quantity demanded.
• B) raising the price of the commodity in question while decreasing the quantity demanded.
• C) reducing the price of the commodity in question while increasing the quantity demanded.
• D) reducing the price of the commodity in question while decreasing the quantity demanded.

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Definitions:

Probability

The determination of the probability an event occurs, specified as a number between 0 and 1.

Age Group

A range of ages into which individuals are categorized for the purpose of analysis or marketing.

Applicants

Individuals who apply or register for something, such as a job, program, or school.

Hired

The process of offering employment to a candidate or the state of being employed.