When the Market Price of a Good Is Above Its

question 43

Multiple Choice

When the market price of a good is above its equilibrium value, and all other determinants are unchanged

• A) a shortage will exist in the market.
• B) the quantity demanded will be greater than the quantity supplied.
• C) the government will regulate the price of the good to ensure equilibrium is attained.
• D) a surplus will exist in the market.

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Definitions:

Distribution

A statistical term describing how values in a data set are spread out across different categories or ranges.

Third Quartile

The value below which 75% of the data in a data set falls, also known as the upper quartile.

Medicaid

A government-sponsored insurance program in the United States for individuals and families with low income and resources.

Net Worth

The difference between an entity's total assets and its total liabilities.