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:

Independent Events

Independent events are two or more events whose outcomes do not influence each other, meaning the occurrence of one event does not affect the probability of the other.

Mutually Exclusive Events

Two or more events that cannot occur at the same time in any given experiment or real-life situation.

Conditional Probability

The probability of one event occurring with some relationship to one or more other events.

Conditional Probability

The probability of an event occurring given that another event has already occurred.