When Quantity Supplied Is Greater Than Quantity Demanded,there

question 149

Multiple Choice

When quantity supplied is greater than quantity demanded,there

• A)is a shortage.
• B)is a surplus.
• C)may be either a shortage or a surplus.
• D)may be neither a shortage or a surplus.

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Definitions:

Total Expenditure

The aggregate amount of spending by an entity or economy on goods and services, including consumption, investment, government purchases, and net exports.

Isocost Line

A graphical representation showing combinations of inputs that can be purchased with a specific amount of money, facilitating cost-minimization analysis.

Price of Capital

The cost of using capital goods in production, often expressed as an interest rate or rental rate.

Total Expenditures

The total amount of money spent by individuals, firms, or the government on goods and services.