When quantity supplied is greater than quantity demanded
A. there is excess demand that is not being satisfied.
B. price will rise until it gets back to equilibrium.
C. price will fall until it gets back to equilibrium.
D. the market is in equilibrium.
C. price will fall until it gets back to equilibrium.
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In the foreign exchange market, when the U.S. interest rate rises, the supply of dollars ________ and the foreign exchange rate ________
A) increases; does not change B) decreases; rises C) increases; falls D) increases; rises E) decreases; falls
Suppose the seller's opportunity cost of producing shirts is $12 and the buyer's valuation is $22 . If the seller gains $2 more than the buyer from this transaction, what is the price at which the good is exchanged between the two parties?
a. $17 b. $18 c. $19 d. $20
If elasticity of demand is 0.2, elasticity of supply is 0.5, and a 10 percent excise tax is levied on the good:
A. the tax burden on consumers will be greater. B. the tax burden on suppliers will be greater. C. the tax burden will be the same for both. D. one cannot say who will bear the greater burden without knowing the tax.
When economists say wages are "sticky," they mean that they:
A. lead market trends, and other variables will stick to the wage rate and follow it closely. B. get stuck behind current market trends, and follow a typical two-week lag with changes in the economy. C. stick to current market trends, and adjust to equilibrium when changes in the economy occur. D. are slow to adjust to changes in the economy, and can cause unemployment.