When There Is an Excess Quantity Demanded of a Product

question 226

Multiple Choice

When there is an excess quantity demanded of a product at the current price, then:

• A)​the price will tend to fall.
• B)​the price will tend to rise.
• C)​the price must be above the equilibrium price.
• D)​producers will reduce output and sales will fall.

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Definitions:

Direct Labor Account

An account that tracks the cost of workers who are directly involved in the production of goods or services.

Lean Manufacturing

A systematic method for waste minimization within manufacturing systems without sacrificing productivity.

Zero Defects

A management philosophy aiming at reducing and ideally eliminating defects and errors in manufacturing and service processes.

Quality

The degree to which a product or service meets or exceeds customer expectations.