At equilibrium, quantity demanded equals quantity supplied
a. True
b. False
Indicate whether the statement is true or false
True
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Assume no price ceiling exists and a market is in equilibrium. Then a price ceiling is established which is below the market equilibrium. What would result?
a. Shortage. b. Equilibrium. c. Surplus. d. Equity.
In the short-run, a perfectly competitive firm can earn normal profits or above normal profit but it cannot incur losses
a. True b. False Indicate whether the statement is true or false
In the long run, a year-long drought that destroys most of the summer's wheat crops causes permanently:
A. higher prices. B. lower prices. C. lower output. D. None of these is true.
The buying and selling of foreign currency by the central bank is a trade policy whose objective is:
A. reducing purchases of assets abroad. B. stabilizing the exchange rate against external shocks. C. stabilizing the interest rate against foreign capital outflows. D. promoting long term economic growth.