If Aggregate Quantity Supplied Is Greater Than Aggregate Quantity Demanded

question 68

Multiple Choice

If aggregate quantity supplied is greater than aggregate quantity demanded at a particular price level,then a

• A) shortage exists and consumers will bid the price level up.
• B) surplus exists and consumers will bid the price level up.
• C) surplus exists and the price level will decline.
• D) shortage exists and the price level will decline.
• E) c and d

---

Definitions:

Target Profit

The financial goal for the profit a company aims to achieve within a specific period.

High-Low Method

A cost accounting technique used to estimate fixed and variable costs by analyzing the highest and lowest levels of activity.

Variable Cost

Expenses that change directly in relation to fluctuations in production levels or the volume of sales.

Fixed Cost

Expenses that do not change with the level of goods or services produced by the business over a given period.