Suppose That Quantity Supplied of a Product Equals 8 and Quantity

question 2

Multiple Choice

Suppose that quantity supplied of a product equals 8 and quantity demanded equals 5.This market MOST likely is:

• A) experiencing a shortage of this product.
• B) experiencing a surplus of this product.
• C) experiencing a decrease in supply.
• D) in equilibrium with neither a surplus nor a shortage.

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Definitions:

Dow Jones

An index that shows how 30 large, publicly-owned companies based in the United States have traded during a standard trading session in the stock market.

Long-Term Growth

Refers to the sustained increase in the productive capacity of an economy over a significant period of time, typically years or decades.

Recessionary Period

A time characterized by economic decline across the economy, lasting more than a few months, typically visible in real GDP, real income, employment, industrial production, and wholesale-retail sales.

Inflation

A general increase in prices and fall in the purchasing value of money.