Solved

When Quantity Demanded of a Good Is Less Than the Quantity

Question 21

Multiple Choice

When quantity demanded of a good is less than the quantity supplied at the prevailing market price,


A) the market is in equilibrium
B) the price of the good tends to rise
C) the price of the good tends to fall
D) the demand curve shifts rightward until the surplus is eliminated
E) the supply curve shifts leftward until the shortage is eliminated

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q16: Studies show that the demand curve for

Q17: Exhibit 4-1 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB6784/.jpg" alt="Exhibit 4-1

Q18: A surplus occurs whenever<br>A)current price is greater

Q19: Exhibit 4-1 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB6784/.jpg" alt="Exhibit 4-1

Q20: A decrease in the supply of chocolate

Q22: Two goods are considered substitutes only if

Q23: The law of demand says that as

Q24: Which of the following best defines supply?<br>A)the

Q25: If the supply curves for the following

Q26: In which of the following situations will