When Quantity Demanded Exceeds Quantity Supplied

question 47

Multiple Choice

When quantity demanded exceeds quantity supplied:

• A) there exists a surplus of a good.
• B) the price tends to fall.
• C) the price is below the equilibrium price.
• D) there is no excess demand.

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Definitions:

ROI

Stands for Return on Investment, a measure used to evaluate the performance and profitability of an investment by comparing its gains to its costs.

Strategic Group

A concept in strategic management that groups companies within an industry that have similar business models or strategies, allowing for analysis of competition and strategic positioning.

Niche Market

A small, specialized segment of the market with specific needs that are not being addressed by mainstream providers.

Market Share

The portion of a market controlled by a particular company, product, or brand, often expressed as a percentage of total sales in that market.