If the Price in the Market for a Commodity Is

question 231

Multiple Choice

If the price in the market for a commodity is below the equilibrium price, the:

• A) price will remain unchanged.
• B) price will decline to clear the market.
• C) quantity supplied exceeds the quantity demanded.
• D) quantity demanded exceeds the quantity supplied.

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Definitions:

Demand

The amount of a product or service that buyers are ready and capable of buying at different price levels over a specified time frame.

Increase

A situation where there is a growth or rise in figures, amounts, or indicators in an economic context.

Demand Curve

A graphical representation that shows the relationship between the price of a good and the quantity demanded by consumers.

Demand

The quantity of a good or service that consumers are willing and able to purchase at various prices during a given period.