If Producers Incorrectly Set the Price of Their Product Too

question 113

Multiple Choice

If producers incorrectly set the price of their product too high a:

• A) shortage will result and consumers will bid the price down to equilibrium.
• B) surplus will result and excess goods in inventory will signal to producers to lower their prices.
• C) shortage will result and consumers will bid the price up to equilibrium.
• D) surplus will result and excess goods in inventory will signal the producers to restrict output until sales increase.

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Definitions:

Chondroblast

A cell that produces cartilage matrix, leading to the formation of new cartilage.

Cartilage

A flexible, rubbery connective tissue found in various parts of the body, such as the joints, ear, and nose, providing support and structure.

Macrophage

A type of white blood cell that engulfs and digests cellular debris, foreign substances, microbes, and cancer cells.

Phagocytizes

The process by which cells engulf and digest solid particles, typically used by immune system cells to eliminate pathogens and debris.