Suppose the Current Price of a Pound of Steak Is

question 128

Multiple Choice

Suppose the current price of a pound of steak is $12 per pound and the equilibrium price is $9 per pound.In this case,there is a

• A) shortage, so the price falls and quantity demanded increases.
• B) surplus, so the price falls and quantity demanded increases.
• C) shortage, so the price rises and quantity demanded decreases.
• D) surplus, so the price rises and quantity demanded increases.
• E) surplus, so the price falls and quantity supplied increases.

---

Definitions:

Trade

The act of buying, selling, or exchanging goods and services between people, firms, or countries.

Trade

The exchange of goods and services between people or entities, often in the context of international markets.

Resource Constraints

Limitations on the availability of resources, such as time, money, and materials, that affect decision-making and outcomes.

Self-Sufficient

The ability of an individual or a community to provide for all of their needs, particularly in terms of producing food, without relying on external sources.