When a Resource Price Is Below Equilibrium

question 71

Multiple Choice

When a resource price is below equilibrium,

• A) excess supply will be present.
• B) excess demand will be present.
• C) the supply of the resource will be inelastic.
• D) the demand for the resource will be inelastic.

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Definitions:

Standard Deviation

Standard deviation is a statistical measure that quantifies the amount of variation or dispersion of a set of data values from the mean, often used to assess investment risks.

Beta

An indicator of the level of fluctuation, or inherent risk, associated with a specific security or portfolio in relation to the overall market.

Perpetual Preferred Stock

A type of preferred stock with no fixed maturity date, offering dividends indefinitely without obligation of redemption by the issuer.

Flotation Cost

The total costs that a company incurs when it issues new securities, including underwriting, legal, and registration fees.