Assume There Is a Surplus in the Market for Hybrid

question 29

Multiple Choice

Assume there is a surplus in the market for hybrid automobiles.Which of the following statements correctly describes this situation?

• A)The supply of hybrid automobiles is greater than the demand for hybrid automobiles.
• B)Some consumers will be unable to obtain hybrid automobiles at the market price and will have an incentive to offer to buy the product at a higher price.
• C)The price of hybrid automobiles will fall in response to the surplus;as the price falls the quantity demanded will increase and the quantity supplied will decrease.
• D)The surplus will cause an increase in the equilibrium price of hybrid automobiles.

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Definitions:

Ratio

A quantitative relationship between two numbers, showing how many times one value contains or is contained within the other.

Household

A group of people, often a family, who live together in a single dwelling.

Frequency Distribution

The representation, often in graphical form, of the frequencies within a dataset to show how the values in the set are distributed.

Well Defined

Clearly explained or identified with precise boundaries or criteria.