The Price of a Good Will Fall If

question 339

Multiple Choice

The price of a good will fall if:

• A) there is an excess demand of the good.
• B) demand and supply of the good are the same.
• C) there is an excess supply of the good.
• D) the price is below the equilibrium price.
• E) the price is near the equilibrium price.

---

Definitions:

Administrative Costs

Expenses related to the general operation of a business rather than production, sales, or other specific functions.

Net Realisable Value Method

An accounting technique used to calculate the value of an inventory or asset, minus any costs associated with its sale or disposal.

Joint Production Costs

The costs incurred in the process of producing two or more products simultaneously from the same raw materials or process.

Specialised Equipment

Equipment designed for a specific purpose or unique task, often requiring specific skills or technology to operate effectively.