At a Price for Which Quantity Demanded Exceeds Quantity Supplied,a

question 158

Multiple Choice

At a price for which quantity demanded exceeds quantity supplied,a __________ is experienced,which pushes the price __________ toward its equilibrium value.

• A) surplus; downward
• B) surplus; upward
• C) shortage; downward
• D) shortage; upward

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Definitions:

Performance Provisions

Clauses within a contract that define the standards and conditions for performance by the parties involved.

Time for Delivery

The specific period within which goods or services must be delivered as stipulated in a contract.

Reasonable Time for Inspection

A legally acceptable period allowed for a buyer to examine goods to ensure they conform to the contract terms.

Effective Acceptance

The act of agreeing to the terms of an offer in a manner that is recognized by law, thereby creating a binding contract.