When There Is Excess Demand for a Product in a Market

question 227

Multiple Choice

When there is excess demand for a product in a market,

• A) price will tend to fall.
• B) price must be below the equilibrium price.
• C) price must be above the equilibrium price.
• D) producers will reduce output and sales will fall.

Learn the initial steps and considerations in developing a new scale or survey tool.

Understand the differences and applications of Thurstone and Likert scales.

Acknowledge the impact of respectful and culturally sensitive survey questions on participant response rates.

Master the process and order of operations in creating, testing, and finalizing a survey.

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Definitions:

Progressive Tax System

A taxation system where the tax rate increases as the taxable income increases, considered more equitable by distributing the tax burden according to ability to pay.

Marginal Tax Rate

The rate at which the next dollar of taxable income is taxed, reflecting the percentage of tax paid on the last dollar earned.

Average Tax Rate

The proportion of total income that is paid in taxes, calculated by dividing the total tax payment by total income, often expressed as a percentage.

Lump-Sum Tax

A taxation method that imposes a fixed amount on the taxpayer irrespective of their circumstances.