If the Market Price Falls from P0 to P1 in the Above

question 81

Multiple Choice

If the market price falls from P0 to P1 in the above figure, then

• A) a new equilibrium quantity is established.
• B) there is a shortage equal to the distance EF.
• C) there will be a further tendency for price to fall.
• D) there is a surplus of goods on the market equal to the distance Q1, Q2.

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Definitions:

Services

Intangible products such as expertise, assistance, or access to resources provided by businesses or professionals.

Accounting Period

A specific time period for which financial records and statements are prepared for a business or organization.

One Quarter

A term referring to one-fourth of a year, used in financial and business contexts to divide the fiscal or calendar year into four periods for reporting purposes.

One Year

A period consisting of 12 consecutive months.