If We Observe a Market Where the Quantity Supplied Exceeds

question 279

Multiple Choice

If we observe a market where the quantity supplied exceeds the quantity demanded, but the market price does not fall, then one explanation for this observation is

• A)the market has a price ceiling in place.
• B)consumers don't really like this product.
• C)the market has a price floor in place.
• D)sellers must produce a minimum quantity of the good, regardless of the demand for the product.

---

Definitions:

Starch Test

A method used in various industries to detect the presence of starch by turning an iodine solution blue-black upon contact. In another context, it assesses the effectiveness of print advertisements based on recall and recognition.

Unaided Recall Test

A market research technique that measures how well consumers can remember a brand or product without any prompts or cues.

Starch Test

A chemical method used to determine the presence of starch in various materials, typically involving an iodine solution that turns blue-black in the presence of starch.

Aided Recall Test

A marketing research technique where respondents are given specific cues or prompts to help them remember advertisements or brands.