Which of the Following Statements Differentiates Between a Shortage and a Surplus

question 81

Multiple Choice

Which of the following statements differentiates between a shortage and a surplus?

• A) A shortage occurs when price is held at the equilibrium price, but a surplus occurs when price is held above the equilibrium price.
• B) A shortage occurs when price is held below the equilibrium price, but a surplus occurs when price is held at the equilibrium price.
• C) A shortage occurs when quantity supplied exceeds quantity demanded, whereas a surplus occurs when quantity demanded exceeds quantity supplied.
• D) A shortage occurs when quantity demanded exceeds quantity supplied, whereas a surplus occurs when quantity supplied exceeds quantity demanded.

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Definitions:

Tunnel Vision Memory

A cognitive bias where individuals focus on a limited aspect of an experience or event, neglecting other relevant details.

Mood-Congruent Memory

The tendency to recall experiences that are consistent with one’s current good or bad mood.

Memory Consolidation

The process by which short-term memories are transformed into long-term memories, making them stable and long-lasting.

Hippocampus

A crucial part of the brain involved in memory formation, organization, and retrieval.