In a Free Market, If the Price of a Good

question 71

Multiple Choice

In a free market, if the price of a good is below the equilibrium price, then;

• A)the government will set a higher price to reestablish the market equilibrium.
• B)sellers, dissatisfied with growing inventories, will raise their prices.
• C)buyers, hoping to ensure they acquire the good, will bid the price higher.
• D)sellers, dissatisfied with growing inventories, will lower their prices.

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Definitions:

Average Annual Revenue

The mean income generated by a business, entity, or asset within one fiscal year.

Random Sample

A group of people selected from a bigger group, with every person having the same probability of being chosen.

Standard Deviation

A statistical tool that measures the extent of variation or scattering of values in a dataset, pointing out how much the data varies from the mean.

Normal Population

A statistical population that follows a normal distribution, characterized by its bell-shaped curve where most observations cluster around the central peak and the probabilities for values to occur are symmetrically distributed around the mean.