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.

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Definitions:

Homeostasis

The tendency of a biological system to maintain stable internal conditions despite external changes.

Homeostasis

The tendency of a biological system to maintain stability while adjusting to conditions that are optimal for survival.

Yerkes-Dodson Law

A theory suggesting there is an optimal level of arousal for the best performance of a task; too little or too much arousal can negatively affect task performance.

Moderately Aroused

A state of being neither too relaxed nor too excited, often considered optimal for certain tasks or learning.