When There Is an Excess Quantity Demanded of a Product

question 226

Multiple Choice

When there is an excess quantity demanded of a product at the current price, then:

• A)​the price will tend to fall.
• B)​the price will tend to rise.
• C)​the price must be above the equilibrium price.
• D)​producers will reduce output and sales will fall.

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Definitions:

3-Month Sales

A measure of the total sales or revenue generated by a company or product within a three-month period.

Video Sales

The commercial activity of selling video content, including physical media like DVDs or digital downloads and streaming.

Proportionate Costs

Expenses that vary in relation to the level of activity or volume of output in a business, similar to variable costs.

Wholesale Costs

The price charged for goods or materials when sold in large quantities to retailers or other businesses, as opposed to retail prices charged to consumers.