If the Price Is Below the Equilibrium Price

question 43

Multiple Choice

If the price is below the equilibrium price,

• A) there is a surplus.
• B) there is a shortage.
• C) the supply curve will shift rightward.
• D) the supply curve will shift leftward.
• E) the demand curve will shift leftward.

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Definitions:

Liquidated Damages

A remedy requiring the party responsible for a breach to pay an amount specified in the contract.

Housing Cost

The expense associated with acquiring, maintaining, or renting a residence.

Contract Remedies

Legal solutions available to a party of a contract when the opposing party has breached the agreement.

Contract Frustration

A legal doctrine which releases both parties from their contractual obligations due to unexpected events that render the contract impossible to fulfill.