If There Is a Surplus of a Product, Its Price

question 334

Multiple Choice

If there is a surplus of a product, its price

• A) is below the equilibrium level.
• B) is above the equilibrium level.
• C) will rise in the near future.
• D) is in equilibrium.

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Definitions:

Service Organisations

Entities that primarily provide intangible products or services to customers rather than physical goods.

Merchandisers

Businesses that purchase goods for resale at a profit, dealing primarily in finished goods rather than services or production.

Physical Products

Tangible items that are produced and then sold to consumers or other businesses.

Overhead Rate

A rate used to allocate indirect costs to products or services, typically calculated as a ratio of overhead costs to a base such as direct labor hours or machine hours.