When There Is a Surplus in a Market,prices Are Likely

question 97

Multiple Choice

When there is a surplus in a market,prices are likely to fall because:

• A) Buyers do not wish to buy as much as sellers want to sell.
• B) Some buyers will offer to pay a higher price,initiating a move up the supply curve.
• C) Sellers are likely to increase their production.
• D) Buyers will wait for the government to establish a price floor.

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Definitions:

Future Trends

Predictions or projections about the direction of developments or occurrences in any field over upcoming periods.

Demographic Transition Model

A theory that describes the transition from high birth and death rates to lower birth and death rates as a country or region develops from a pre-industrial to an industrialized economic system.

Birth Rates

The number of live births per thousand of the population in a given period, often used to measure population growth.

Preindustrial Stage

A period or phase in development before the widespread industrialization, characterized by agrarian economies and limited technology.