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.

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Definitions:

Marine Biologists

Scientists who study life in the oceans and other saltwater environments, including the behavior, physiology, and ecology of marine species.

Freshwater Systems

Ecosystems that are comprised of bodies of water like rivers, lakes, and wetlands, which have low salt concentration.

Economic Service

Activities or functions that have monetary value to individuals or society at large, such as pollination, clean water, and raw material provision.

Nutrient Cycling

The movement and exchange of organic and inorganic matter back into the production of living matter through processes such as decomposition.