Exhibit 3-2 -If Price Is Below Equilibrium

question 72

Multiple Choice

Exhibit 3-2
-If price is below equilibrium,

• A)demand is too low for equilibrium.
• B)the income and substitution effects will cause the price to rise.
• C)quantity supplied exceeds quantity demanded, and a shortage exists.
• D)quantity demanded exceeds quantity supplied, and a shortage exists.
• E)demand will increase.

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Definitions:

Drag

A force acting opposite to the relative motion of any object moving with respect to a surrounding fluid; it also describes the resistance an object encounters while moving through a fluid (like air or water).

Cope

In construction and metalworking, to shape the end of a beam or metal profile so that it fits the contours of another for a joining process.

Cheeks

Parts of an object or tool flanking other components, typically used in the context of machinery or the human face.

Rounded Corners

Corners that are shaped into a smooth, rounded angle to improve appearance, handling, or safety.