If the Market Price Is Higher Than the Equilibrium Price

question 21

Multiple Choice

If the market price is higher than the equilibrium price a:

• A) shortage exists and the equilibrium price will rise until it equals the market price and the shortage is eliminated.
• B) surplus exists and the market price will fall until it equals the equilibrium price and the surplus is eliminated.
• C) surplus exists and the equilibrium price will rise until it equals the market price and the surplus is eliminated.
• D) shortage exists and the market price will fall until it equals the equilibrium price and the shortage is eliminated.

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Definitions:

Secret Ballot

A voting method in which a voter's choices in an election or a referendum are anonymous, safeguarding the right to privacy in the electoral process.

Conservative Goals

Objectives or aims that seek to preserve traditional institutions, values, and practices, emphasizing stability, and continuity, and often resistant to rapid change or innovation.

Concert of Europe

An informal agreement between major European powers in the 19th century aimed at preserving the balance of power and preventing the outbreak of major wars through diplomacy.