-Refer to Exhibit 10-1.At Q 3 ,

At Q 3 , TP (Transaction Price) is greater than TE (Exchange Price), indicating that the price consumers are willing to pay is higher than the equilibrium price, leading to an increase in inventory as suppliers produce more to meet the higher demand at the transaction price.

-Refer to Exhibit 10-1.At Q 3 ,

At Q 3 , TP (Transaction Price) is greater than TE (Exchange Price), indicating that the price consumers are willing to pay is higher than the equilibrium price, leading to an increase in inventory as suppliers produce more to meet the higher demand at the transaction price.

Solved

-Refer to Exhibit 10-1.At Q₃

Question 36

Multiple Choice

-Refer to Exhibit 10-1.At Q<sub>3</sub>, A) TE > TP,and there are decreases in inventory. B) TE = TP,and there are no changes in inventory. C) TP > TE,and there are increases in inventory. D) TE > TP,and there are increases in inventory.
-Refer to Exhibit 10-1.At Q₃,

A) TE > TP,and there are decreases in inventory.
B) TE = TP,and there are no changes in inventory.
C) TP > TE,and there are increases in inventory.
D) TE > TP,and there are increases in inventory.

Correct Answer: