When Quantity Demanded of a Good Exceeds the Quantity Supplied

question 53

Multiple Choice

When quantity demanded of a good exceeds the quantity supplied at the prevailing market price,_____.

• A)the market is in equilibrium
• B)the price of the good will decrease
• C)the price of the good will tend to increase
• D)the demand curve shifts rightward until the surplus is eliminated
• E)the supply curve shifts leftward until the surplus is eliminated

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Definitions:

Corporate Owners

Individuals or entities that legally possess shares of stock in a corporation, granting them ownership stakes in the company.

Individual Accountability

The principle that each person is responsible for their own actions and may be required to explain them when necessary.

Government Bureaucracy

Refers to the organization of government offices and entities that implement policies, rules, and regulations through structured procedures and formal divisions of responsibility.

Civil Service Protections

The legal and regulatory provisions that safeguard employees within the public sector, typically ensuring job security and fairness in hiring and promotions.