When the Quantity Demanded of a Good Exceeds the Quantity

question 30

Multiple Choice

When the quantity demanded of a good exceeds the quantity supplied of the good at the prevailing market price,_____

• A)the market will be in equilibrium.
• B)the price of the good will decrease.
• C)the price of the good will tend to increase.
• D)the demand curve will shift rightward until the surplus is eliminated.
• E)the supply curve will shift leftward until the surplus is eliminated.

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Definitions:

Target Company

A company that is the subject of a merger or acquisition by another company, often referred to in the context of takeover bids.

Potential Acquirer

An entity, often a company or investor, that is considered likely or has expressed interest in purchasing another company.

Greenmail

A strategy where a company pays a premium to buy back its own stock from a corporate raider to prevent a hostile takeover.

Legal Device

A legal tool or method used to meet a requirement, enforce a right, or manage a legal process.