When a Surplus Exists in a Market, We Know That

question 247

Multiple Choice

When a surplus exists in a market, we know that the actual price is:

• A) above equilibrium price, and quantity supplied is greater than quantity demanded.
• B) above equilibrium price, and quantity demanded is greater than quantity supplied.
• C) below equilibrium price, and quantity demanded is greater than quantity supplied.
• D) below equilibrium price, and quantity supplied is greater than quantity demanded.

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Definitions:

Hypothetical Proposition

An assumption or proposition made for the sake of argument that explores consequences of its being true, regardless of its actual truth value.

Antecedent

In logic and grammar, it refers to the conditional clause or phrase to which a pronoun refers back; in logic, also the first part of a conditional statement.

Consequent

The “then” component in a hypothetical proposition.

Disjunctive Premise

In logic, a premise that presents two or more options or possibilities, typically in an "either/or" format, one of which must be true.