Suppose the Equilibrium Price of Oranges Is $2

question 109

Multiple Choice

Suppose the equilibrium price of oranges is $2.00 per kilogram.If the actual price is above the equilibrium price a

• A)shortage exists,and the price rises to restore equilibrium.
• B)shortage exists,and the price falls to restore equilibrium.
• C)surplus exists,but nothing happens until either the demand or the supply changes.
• D)surplus exists,and the price falls to restore equilibrium.
• E)surplus exists,and the price rises to restore equilibrium.

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Definitions:

Norms

Standards established by society to tell its members what types of behavior are typical or expected.

Standards

Accepted or agreed-upon criteria or levels of quality that serve as measures for comparison or guidelines.

Society

A group of individuals living together in a more or less ordered community, sharing customs, laws, and organization.

Reciprocity

A social norm of responding to a positive action with another positive action, fostering mutual benefit and cooperation.