Suppose the Equilibrium Price of Oranges Is $2

question 205

Multiple Choice

Suppose the equilibrium price of oranges is $2.00 per pound.If the actual price is above the equilibrium price,a

• A) shortage exists and the price falls to restore equilibrium.
• B) shortage exists and the price rises to restore equilibrium.
• C) surplus exists and the price falls to restore equilibrium.
• D) surplus exists and the price rises to restore equilibrium.
• E) surplus exists but nothing happens until either the demand or the supply changes.

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Definitions:

Clustering

The process of grouping a set of objects in such a way that objects in the same group are more similar to each other than to those in other groups.

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A branch of rehabilitative health that uses specially designed exercises and equipment to help patients regain or improve their physical abilities.

S/R

Stimulus/Response, a concept in psychology that describes how an individual reacts to environmental stimuli, leading to behavioral responses.

Lab

A laboratory, often a room or building equipped for scientific experimentation, research, or teaching.