When the Actual Price in a Market Is Above the Equilibrium

question 80

Multiple Choice

When the actual price in a market is above the equilibrium price we would expect:

• A)this higher price to be the new equilibrium.
• B)a shortage of the good or service.
• C)a surplus of the good or service.
• D)an excess demand or excess supply depending upon the extent of the difference between actual and equilibrium price.

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Definitions:

Peripheral Route

A persuasive strategy that relies on superficial cues rather than substantive arguments to influence someone's attitude or behavior.

Central Route

A method of persuasion that involves high levels of cognitive processing, where the audience considers logical arguments and substantial evidence.

Elaboration Likelihood Model

A theory explaining different ways of processing stimuli, why they are used, and their outcomes on attitude change.

Attractive Celebrities

Famous individuals who are widely recognized and considered appealing or desirable in appearance.