"In a Surplus Scenario, as Prices Fall, Consumers Buy More

question 90

Multiple Choice

"In a surplus scenario, as prices fall, consumers buy more, eliminating the surplus and moving the market back to equilibrium." This statement would be correct if:

• A)prices rise instead of falling.
• B)it is a shortage scenario.
• C)initial market price is below the equilibrium price.
• D)The statement is correct as written.

---

Definitions:

Hybrid Cars

Vehicles powered by a combination of an internal combustion engine and one or more electric motors, using less fuel and emitting less CO2 than conventional vehicles.

Motorcycles

Two-wheeled vehicles that are powered by an engine, often used for both transportation and recreation.

OLED Televisions

TVs that use Organic Light-Emitting Diode technology to produce images, known for thick contrast, deep blacks, and energy efficiency.

LCD Televisions

Electronic devices that use liquid crystal displays to show television programming, movies, and other content.