If Producers Incorrectly Set the Price of Their Product Too

question 43

Multiple Choice

If producers incorrectly set the price of their product too low 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 the 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.

---

Definitions:

Cirrhosis

A liver disease resulting in the production of nonfunctional scar tissue.

Unprotected Sex

Sexual activity without the use of barrier methods of contraception or protection against sexually transmitted infections (STIs).

College Graduates

Individuals who have completed a program of study at a college or university and have been awarded an academic degree.

High School Dropouts

Individuals who do not complete their secondary education, often facing economic and social disadvantages as a result.