If the Price Is Lower That the Equilibrium Price, Which

question 2

Multiple Choice

If the price is lower that the equilibrium price, which of the following will occur?

• A) The price will remain low.
• B) The price will reduce even more.
• C) The price will raise to the equilibrium price.
• D) Demand will shift.

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Definitions:

Conditions

The specific requirements, terms, or circumstances that define an agreement or situation.

Capacity

The maximum output that a business can produce under normal conditions over a certain period of time.

Capital

Financial assets or the financial value of assets, such as funds held in deposit accounts, as well as the physical factors of production including machinery and buildings.

Character

In finance, character often refers to one of the "Three Cs" (character, capacity, collateral) used to assess a borrower's creditworthiness, focusing on their reputation for repaying debts.