The Following Question Are Based on the Following Diagram

question 59

Multiple Choice

The following question are based on the following diagram:

-For a market to exhibit excess supply

• A) demand must exceed supply.
• B) the market must be growing.
• C) demand must increase.
• D) the equilibrium price must be too high to clear the market.
• E) the actual price must be above the equilibrium price.

---

Definitions:

Derived Demand

The demand for a product or service that arises from the demand for another product or service linked to it.

Automotive Market

The sector of the economy that deals with the production, distribution, and sale of motor vehicles.

Firestone

A multinational tire manufacturing company known for producing a wide range of tires for vehicles.

Product Mix

The total range of products offered by a company, including variations of products based on size, color, and other attributes.