A Price Below the Equilibrium Price Will

question 244

Multiple Choice

A price below the equilibrium price will:

• A) result in pressure for price to rise.
• B) result in a surplus.
• C) never be the case.
• D) result in pressure for price to fall.

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Definitions:

Lending Institution

A financial institution that provides loans to individuals or businesses.

Gross Working Capital

The total of all current assets of a company, indicating the liquid resources available for day-to-day operations.

Accounts Payable

Liabilities of a business that represent its obligations to pay off a short-term debt to its creditors or suppliers.

Fixed Assets

Long-term tangible assets that are used in the operations of a business and are not expected to be converted to cash in the short term.