When Quantity Demanded of a Good Is Less Than the Quantity

question 21

Multiple Choice

When quantity demanded of a good is less than the quantity supplied at the prevailing market price,

• A)the market is in equilibrium
• B)the price of the good tends to rise
• C)the price of the good tends to fall
• D)the demand curve shifts rightward until the surplus is eliminated
• E)the supply curve shifts leftward until the shortage is eliminated

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Definitions:

Layoff Cost

Expenses incurred by an organization when it temporarily or permanently terminates employment, typically including severance pay and benefits continuation.

Hiring And Training Cost

Expenses incurred in recruiting and equipping new employees with the necessary skills and knowledge for their roles.

Labor Hours

The total number of work hours contributed by employees for productive activities over a specified period.

Inventory Holding Cost

The total cost associated with keeping inventory in stock, including storage, insurance, taxes, depreciation, and opportunity costs.