If the Quantity Demanded Exceeds the Quantity Supplied in a Market

question 295

Multiple Choice

If the quantity demanded exceeds the quantity supplied in a market, then the result is which of the following?

• A) Deadweight loss
• B) Inefficiency
• C) Underproduction
• D) Each of these are true.

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Definitions:

Direct Labor

Direct Labor refers to the wages and benefits for employees directly involved in the production of goods, easily traceable to specific products or services.

Variable Electric Power

Electricity supply or rate that can fluctuate based on demand or time of use, often tied to renewable energy sources.

Fixed Costs

Expenses that do not change in proportion to the activity of a business.

Finished Goods Inventory

The direct materials costs, direct labor costs, and factory overhead costs of finished products that have not been sold.