Assume That the Equilibrium Price for a Good Is $5

question 158

Multiple Choice

Assume that the equilibrium price for a good is $5. If the market price is $10, a:

• A) shortage causes the price to decline toward $5.
• B) surplus causes the price to rise above $10.
• C) shortage causes the price to rise above $10.
• D) surplus causes the price to decline toward $5.

---

Definitions:

Legalese

The formal and technical language of legal documents that is often difficult for laymen to understand.

Intoxication

A condition resulting from the excessive consumption of alcohol or drugs, impairing a person's cognitive and physical capacities.

Disaffirmed

The act of denying or rejecting a previously accepted contract or agreement, particularly by someone not legally bound by it.

Regulation Of Gambling

The laws, policies, and guidelines that govern gambling activities to ensure they are conducted fairly, responsibly, and free from criminal influence.