If Producers Incorrectly Set the Price of Their Product Too

question 91

Multiple Choice

If producers incorrectly set the price of their product too high:

• A)a shortage will result and consumers will bid the price down to equilibrium.
• B)a surplus will result and excess goods in inventory will signal the producers to lower their prices.
• C)a shortage will result and consumers will bid the price up to equilibrium.
• D)a surplus will result and excess goods in inventory will signal the producers to restrict output.until sales increase.

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Definitions:

Elliot Jacques

A British psychoanalyst and management consultant known for his theories on corporate hierarchy and organizational structure.

Time Horizons

The intended duration over which an individual, project, or investment is expected to be evaluated or engaged.

Organize

The act of arranging or structuring resources, information, or activities in a systematic way for efficient management or implementation.

Time Frame

A specific period during which certain events occur or are expected to occur.