When Quantity Demanded Exceeds Quantity Supplied

question 47

Multiple Choice

When quantity demanded exceeds quantity supplied:

• A) there exists a surplus of a good.
• B) the price tends to fall.
• C) the price is below the equilibrium price.
• D) there is no excess demand.

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Definitions:

Direct Method

A way to prepare a cash flow statement where actual cash flows from operating activities are listed, rather than being indirectly calculated.