Suppose the Equilibrium Price of Oranges Is $2

question 205

Multiple Choice

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

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

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Definitions:

Causal Inferences

Causal inferences are conclusions about cause-and-effect relationships, often drawn from experiments or observational studies, looking at how one variable influences another.

Right Hemisphere

The half of the brain that controls the left side of the body, associated with creativity, spatial ability, and the processing of visual and auditory stimuli.

Left Hemisphere

The left side of the brain, primarily responsible for controlling the right side of the body and functions such as speech, logic, and analytical thinking.

Right Temporal Lobe

The portion of the brain located beneath the right temple, responsible for processing auditory information and contributing to the understanding of language and the integration of memories.