Suppose That a Market for a Product Is in Equilibrium

question 38

Multiple Choice

Suppose that a market for a product is in equilibrium at a price of $5 per unit. At any price above $5 per unit

• A) there will be an excess demand for the product.
• B) there will be an excess supply of the product.
• C) the quantity supplied of the product will be less than the quantity demanded of that product.
• D) there will be a shortage of that product.

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Definitions:

Cognitive Dissonance

The psychological discomfort experienced when holding two conflicting beliefs, attitudes, or values simultaneously.

Consonance

A harmonious agreement or compatibility among the components of a system, philosophy, or group, often leading to a coherent and unified whole.

Emotional Contagion

A dynamic process through which the emotions of one person are transferred to another, either consciously or unconsciously, through nonverbal channels.

Cognition

Refers to the mental processes involved in gaining knowledge and comprehension, including thinking, knowing, remembering, judging, and problem-solving.