If Price Is Above the Equilibrium Price, Then There Will

question 147

Multiple Choice

If price is above the equilibrium price, then there will be:

• A)both excess supply and excess demand.
• B)neither excess supply nor excess demand.
• C)excess supply.
• D)excess demand.

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Definitions:

Expected Rate Of Return

The anticipated profit or loss from an investment, considering both the risk and the return.

Normal Rate Of Return

The average or expected return on investment in a normal market condition, often considered the minimum acceptable compensation for investment risk.

Depreciating Capital

Assets that lose value over time due to wear and tear or obsolescence.

Normal Rate Of Return

The average or expected return on an investment or project, often considered the minimum acceptable return given the risk involved.