Which of the Following Is Correct

question 120

Multiple Choice

Which of the following is correct?
i.A surplus puts downward pressure on the price of a good.
ii.A shortage puts upward pressure on the price of a good.
iii.There is no surplus or shortage at equilibrium.

• A) i and ii
• B) i and iii
• C) ii and iii
• D) i, ii, and iii
• E) only iii

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Definitions:

Location Economies

Cost advantages that a firm obtains by operating in a particular geographical area.

Cost-Leadership Strategy

A business approach focused on gaining a competitive advantage by minimizing costs while maintaining acceptable quality, aiming to offer the lowest prices in the market.

Digital Platform

A technology solution that connects users and providers, facilitating interactions or transactions over the internet.

Global Integration

The process of international interconnection and cooperation, through which businesses and economies around the world become more interdependent.