When There Is Excess Demand for a Product in a Market

question 227

Multiple Choice

When there is excess demand for a product in a market,

• A) price will tend to fall.
• B) price must be below the equilibrium price.
• C) price must be above the equilibrium price.
• D) producers will reduce output and sales will fall.

Grasp the global dynamics of commercial fishing and aquaculture.

Comprehend sustainable agriculture techniques and their impact on poverty reduction.

Recognize the importance of managing rangelands to prevent overgrazing and support biodiversity.

Identify the consequences of soil erosion and water pollution from different agricultural practices.

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Definitions:

Net Income

is the total earnings of a company after all expenses and taxes have been subtracted from total revenue; a key indicator of financial health.

Accrual Accounting

An accounting method where revenues and expenses are recorded when they are earned or incurred, regardless of when cash transactions occur.

Current Operating Liabilities

Short-term liabilities that are incurred as part of the normal operations of a business, due within a fiscal year.

Decreases

A reduction in quantity, size, or overall value of an asset, revenue, or other financial metric.