Which of the following accurately describes a surplus?

O A. A car company tries to charge too high a price for a car and has to

reduce the price.

B. A reduction in the cost of steel enables a car company to reduce

the sale price of its cars.

C. The production costs for a certain car are below the sale price of

that car

D. Consumer demand for a certain car is below the number of cars

that are produced.

Question

Zachariah Chan

History

1 November, 13:57

Which of the following accurately describes a surplus?

O A. A car company tries to charge too high a price for a car and has to

reduce the price.

B. A reduction in the cost of steel enables a car company to reduce

the sale price of its cars.

C. The production costs for a certain car are below the sale price of

that car

D. Consumer demand for a certain car is below the number of cars

that are produced.

+3

Answers (2)

Know the Answer?

Weston Donaldson · Answer 1

Weston Donaldson 1 November, 14:15

0

D

Explanation:

just took the test

Beckham Pollard · Answer 2

C

Explanation:

Surplus means price - costs = positive number

In this situation the production cost is below the sale price of the car

So you have a surplus.

If they were equal you'd just break even.

And if the costs are higher than the price you'd have a shortage.