If the Price of a Product Does Not Change Immediately,which

question 134

Multiple Choice

If the price of a product does not change immediately,which of the following will cause an initial surplus of a product?

• A)An increase in the demand or an increase in the supply.
• B)A decrease in the demand or a decrease in the supply.
• C)An increase in the demand or a decrease in the supply.
• D)A decrease in the demand or an increase in the supply.
• E)A change in the quantity demanded.

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Definitions:

Industry Type

A classification that groups companies based on similar business activities, products, or services.

Increasing Cost Industry

An industry in which costs per unit of output rise as the scale of production increases, often due to resource limitations or increasing input prices.

Factor Prices

The cost of inputs used in production, such as labor, land, and capital, which are influenced by supply and demand for these factors.

Market Supply Curve

A graphical representation showing the relationship between the price of a good or service and the total quantity of it that producers are willing to supply.