When There Is an Excess Quantity Supplied of a Product

question 170

Multiple Choice

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

• A)​the market price must be below equilibrium price.
• B)​the quantity demanded is greater than the equilibrium quantity.
• C)​the market price will tend to rise.
• D)​the market price will tend to fall.

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Definitions:

Caveat Emptor

A Latin term meaning "let the buyer beware," advocating that the buyer alone is responsible for checking the quality and suitability of goods before a purchase is made.

Misrepresentation

The provision of false, misleading, or incorrect information about a material fact, intentionally or unintentionally, in a contractual agreement.

Privity Rule

A principle in contract law that states that contracts are private agreements between the parties who have entered into them, affecting no third parties.

Thing or Benefit

Refers to any item of value or advantage that is provided or promised in a transaction or agreement.