Assume There Is a Surplus in the Market for Hybrid

question 69

Multiple Choice

Assume there is a surplus in the market for hybrid automobiles.Which of the following statements correctly describes this situation?

• A)The supply of hybrid automobiles is greater than the demand for hybrid automobiles.
• B)Some consumers will be unable to obtain hybrid automobiles at the market price and will have an incentive to offer to buy the product at a higher price.
• C)The price of hybrid automobiles will fall in response to the surplus;as the price falls the quantity demanded will increase and the quantity supplied will decrease.
• D)the surplus will cause an increase in the equilibrium price of hybrid automobiles.

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Definitions:

Concepts

Abstract ideas or mental symbols that represent general categories of objects, events, or qualities.

Formal Reasoning

The process of thinking logically and systematically about abstract concepts and problems.

Specified Clearly

Described or detailed in a clear and exact manner.

Probability

A measure of the likelihood that an event will occur, often expressed as a number between 0 and 1.