If the Price of a Good Is Above the Equilibrium

question 34

Multiple Choice

If the price of a good is above the equilibrium price,

• A) there is a surplus and the price will rise.
• B) there is a shortage and the price will fall.
• C) there is a shortage and the price will rise.
• D) the quantity demanded is equal to the quantity supplied and the price remains unchanged.
• E) there is a surplus and the price will fall.

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Definitions:

Federal Statutes

Laws enacted by the United States Congress that apply nationally.

Administrative Rules

Regulations issued by government agencies to carry out the intent of legislation.

Common Law

A legal system based on court decisions and precedents rather than statutory laws.

Public Offering

The process of a company selling its shares to the public for the first time, also known as an initial public offering (IPO).