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.

---

Definitions:

Religious Artwork

Artistic works that express or explore religious themes, subjects, or concepts.

Personal Interest Expense

Interest on personal loans, credit cards, etc., that, unlike mortgage or investment interest, is not deductible on federal taxes.

Itemized Deduction

Expenses allowed by the IRS that can be subtracted from AGI to reduce taxable income, as opposed to taking a standard deduction.

Credit Cards

Financial instruments issued by banks allowing users to borrow funds to pay for goods and services with the agreement to repay the bank at a later date.