If the price is below the equilibrium level, then the quantity demanded will exceed the quantity supplied. This is known as ___________________.
a. excess supply
b. excess demand
c. ceteris paribus
d. a price ceiling
b. excess demand
You might also like to view...
In the computation of GDP, Social Security payments count as
A) transfer payments and are included in GDP. B) transfer payments and are not included in GDP. C) government expenditure on goods and services and are included in GDP. D) government expenditure on goods and services and are not included in GDP.
An economist would say the price is too high for a certain service if
a. poor people couldn't afford to buy it. b. nobody could afford to buy it. c. the price was above marginal cost. d. it is an essential service and consumes a significant share of income.
Consider the following:
The relative price of movies this year has
A. increased. B. decreased. C. stayed the same. D. Not enough information has been given to calculate an answer.
The governmental expense of a farm price support tends to diminish as the price of the good rises.
Answer the following statement true (T) or false (F)