When Quantity Demanded of a Good Exceeds the Quantity Supplied

question 53

Multiple Choice

When quantity demanded of a good exceeds the quantity supplied at the prevailing market price,_____.

• A)the market is in equilibrium
• B)the price of the good will decrease
• C)the price of the good will tend to increase
• D)the demand curve shifts rightward until the surplus is eliminated
• E)the supply curve shifts leftward until the surplus is eliminated

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Definitions:

Sales Puffery

Exaggerated or hyperbolic claims about a product or service that are not meant to be taken literally.

Office Furniture

Desks, chairs, tables, and other furnishings intended for use in an office environment to facilitate work and enhance productivity.

Misrepresentation

The act of giving false or misleading information about the characteristics, benefits, or conditions of a product or service, often resulting in unfair or unethical sales practices.

Productivity

The efficiency with which an individual, company, or economy can convert inputs into useful outputs, often measured by the ratio of output to input.