If the Quantity of Textbooks Supplied Is 10,000 Per Year

question 40

Multiple Choice

If the quantity of textbooks supplied is 10,000 per year and the quantity of textbooks demanded is 8,000 per year,there is a ________ in the market and the price will ________.

• A)shortage;rise
• B)shortage;fall
• C)surplus;rise
• D)surplus;fall
• E)surplus;either rise or fall depending on whether supply increases to meet the surplus

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Definitions:

Raw Materials

Basic substances in their natural, modified, or semi-processed states used as inputs for manufacturing finished goods.

Labour

The effort exerted by humans, encompassing both physical and mental activities, in the creation of goods and services.

Cost Structure

The composition of a company's costs, including fixed and variable costs, that determines how it spends money on its operations.

Minimum Quantities

The smallest amount or number of items that must be purchased, produced, or kept in inventory.