-When the Current Price of an Item Is Greater Than

question 164

Multiple Choice

-When the current price of an item is greater than the item's market clearing price

• A) supply is greater than demand.
• B) demand is greater than supply.
• C) quantity supplied is greater than quantity demanded.
• D) quantity supplied is less than quantity demanded.

---

Definitions:

Available

Referring to resources or goods that are obtainable and can be utilized.

Perfectly Price Elastic

This refers to a situation where the demand for a product or service changes infinitely with a very small change in price.

Supply Curve

A graphical representation that shows the relationship between the price of a good or service and the quantity supplied by producers.

Horizontal

A direction or plane that runs parallel to the ground or horizon.