Suppose that the quantity of cars demanded exceeds the quantity of cars supplied. We would expect that:
A. the price of cars will increase.
B. the price of cars will decrease.
C. the supply will increase (supply will shift to the right) to meet the demand.
D. the demand will decrease (demand will shift to the left) to meet the supply.
Answer: A
You might also like to view...
Consider the market for leather shoes. If producers believe the price of leather shoes will increase next month, today
A) the supply curve for leather shoes shifts rightward. B) the supply curve for leather shoes shifts leftward. C) there is a movement along the supply curve for leather shoes. D) the equilibrium price of leather shoes falls. E) the equilibrium quantity of leather shoes increases.
Why is a sunk cost not part of the opportunity cost of a decision?
A. Because the expense would too often outweigh the benefits. B. Because the chances of recouping it are infinitesimally small. C. Because the money is gone, regardless of the decision made. D. Sunk costs are a part of the opportunity cost of a decision.
For a signal between two adversaries to be credible, it must
A. be costly to fake or duplicate. B. be verified by a third party. C. be part of a sequence of transactions. D. have both a good news-bad news component.
The economy of Mainland uses gold as its money. If the government discovers a large reserve of gold on their land
a. the supply of money decreases and the value of money rises. b. the supply of money increases and the value of money falls. c. the demand for money increases and the value of money rises. d. the demand for money decreases and the value of money falls.