When Quantity Demanded Is Greater Than Quantity Supplied

question 121

Multiple Choice

When quantity demanded is greater than quantity supplied,

• A)there is a surplus.
• B)price will fall until it gets back to equilibrium.
• C)quantity supplied will rise and quantity demanded will fall.
• D)quantity supplied will fall and quantity demanded will rise.
• E)All of the answers are true.

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Definitions:

Eligible Dividends

Dividends designated by a company for tax purposes, which may qualify for preferential tax treatment under certain jurisdictions.

Repurchase

The act of a company buying back its own shares from the marketplace, which can affect the company's share price and capital structure.

Stock

A type of security that represents ownership in a corporation and a claim on a part of the company’s assets and earnings.

Earnings Per Share

A portion of a company's profit allocated to each outstanding share of common stock, serving as an indicator of a company's profitability.