If the Price of a Good Is Below the Equilibrium

question 175

Multiple Choice

If the price of a good is below the equilibrium price,

• A) suppliers will find inventories building; they will cut output and raise prices.
• B) suppliers will find inventories being depleted. They will increase production and raise prices.
• C) the demand curve will shift down until an equilibrium is established at the existing price.
• D) the supply curve will shift up until an equilibrium is established at the existing price.

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Definitions:

Person-group Discrimination Discrepancy

A psychological term describing the difference between discriminatory behaviors targeted at an individual versus those directed at a group.

Ingroup Bias

The tendency to favor one's own group, or ingroup, over other groups, or outgroups, which can affect judgement and behavior.

Stigma Consciousness

The awareness and anticipation of societal stigma, leading to behavior that is often aimed at avoiding discrimination.

Master Status

A predominant social position that overwhelmingly defines a person's identity in the eyes of both themselves and others.