If the Price of a Good Is Below the Equilibrium

question 175

Multiple Choice

If the price of a good is below the equilibrium price,

• A) suppliers will find inventories building; they will cut output and raise prices.
• B) suppliers will find inventories being depleted. They will increase production and raise prices.
• C) the demand curve will shift down until an equilibrium is established at the existing price.
• D) the supply curve will shift up until an equilibrium is established at the existing price.

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Definitions:

Labor Exploitation

The unfair treatment of workers, often through inadequate wages, poor working conditions, and excessive working hours, without proper compensation or rights protection.

Multinational Corporations

Companies that operate in various countries around the world, managing production or delivering services in more than one country.

Globalization

Globalization is the process of increased interconnectedness and interdependence of the world's economies, cultures, and populations, facilitated by trade, investment, and information technology.

International Job Mobility

The ability of workers to move across national borders to find employment, often influenced by global economic conditions and immigration policies.