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:

Inter-rater Reliability

The level of agreement among independent observers or raters on the assessment or observation of a particular feature, indicating the consistency of measurements.

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A complex psychiatric disorder characterized by distortions in thinking, perception, emotions, language, sense of self, and behavior.

Special Interest Groups

Organizations of people with shared interests who attempt to influence public policy and decision making to benefit their members or causes.