Suppose the Current Price of a Pound of Steak Is

question 128

Multiple Choice

Suppose the current price of a pound of steak is $12 per pound and the equilibrium price is $9 per pound.In this case,there is a

• A) shortage, so the price falls and quantity demanded increases.
• B) surplus, so the price falls and quantity demanded increases.
• C) shortage, so the price rises and quantity demanded decreases.
• D) surplus, so the price rises and quantity demanded increases.
• E) surplus, so the price falls and quantity supplied increases.

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Definitions:

Totalitarianism

A political system where the state recognizes no limits to its authority and strives to regulate every aspect of public and private life.

Authoritarianism

A form of government characterized by strong central power and limited political freedoms. Individual freedoms are subordinate to the state and there is no constitutional accountability under an authoritarian regime.

Oligarchy

A form of government where power effectively rests with a small number of people, distinguished by royalty, wealth, family ties, education, corporate, or military control.

Aristocracy

A class of people considered to have superior status or privileges, often inherited, based on noble lineage, wealth, or titles.