If the Price of a Good Is Below the Equilibrium

question 175

Multiple Choice

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

• A) suppliers will find inventories building; they will cut output and raise prices.
• B) suppliers will find inventories being depleted. They will increase production and raise prices.
• C) the demand curve will shift down until an equilibrium is established at the existing price.
• D) the supply curve will shift up until an equilibrium is established at the existing price.

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Definitions:

Early Adulthood

A developmental stage typically ranging from the late teens through the twenties, during which individuals gain independence and explore various life paths.

Later Adulthood

A phase of life that follows middle age, where individuals often experience retirement and deal with aging-related issues.

Older Adulthood

A life stage typically defined as beginning at age 65, characterized by retirement, changes in health, and adjustments to aging.

Melanin

A pigment found in the skin, hair, and eyes of people and animals that determines color and offers protection against ultraviolet radiation.