A Price Above the Equilibrium Price Will

question 119

Multiple Choice

A price above the equilibrium price will:

• A) result in quantity supplied being less than quantity demanded.
• B) result in a shortage.
• C) create pressure for price to fall.
• D) tend to rise over time.

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Definitions:

Appreciates

Refers to an increase in the value of an asset or currency against other currencies or assets.

Depreciates

A decline in the value of an asset over time due to wear and tear, obsolescence, or market conditions.

British Pound

The official currency of the United Kingdom, also known as GBP or Sterling.

Exchange-rate Systems

These are frameworks established by countries to govern how their currencies exchange with one another, including floating, fixed, and pegged exchange rates.