When the Price of a Good Is Lower Than the Equilibrium

question 124

Multiple Choice

When the price of a good is lower than the equilibrium price,

• A)a surplus will exist.
• B)buyers desire to purchase more than is produced.
• C)sellers desire to produce and sell more than buyers wish to purchase.
• D)quantity supplied exceeds quantity demanded.

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Definitions:

Permanently Replaced Strikers

Workers who go on strike and are then permanently replaced by the employer, a situation possible under certain labor laws, notably in the United States.

Hot Cargo Agreements

Agreements between labor unions and employers that prohibit the employer from handling, using, or dealing with goods produced by a company targeted by a union boycott.

Monopolies

Market structures in which a single seller dominates trade in a good or service, often leading to reduced competition and higher prices.

Sole Bargaining Agent

The exclusive union designated to represent and negotiate on behalf of all employees in a bargaining unit, regardless of union membership.