If there is a shortage
A) fewer producers want to sell the product because it is too scarce.
B) consumers will drive up the price further.
C) firms will drive up the price to enhance profits.
D) the price will decline to the equilibrium level.
Answer: C
You might also like to view...
If zinc suppliers are successful in forming an international zinc cartel, they will experience
a. lower output and higher prices, which discourage the entry of new firms into the industry b. lower output, higher prices, and the need to organize an effort to prevent the entry of new firms into the industry c. higher output and higher prices, which discourage the entry of new firms into the industry d. higher output, higher prices, and the need to organize an effort to prevent the entry of new firms into the industry e. none of the above
Rising labor productivity means that less labor is needed to produce the same level of output
a. True b. False Indicate whether the statement is true or false
An investor sees the current twelve-month rate at 4% and expects the following future twelve-month rate for each of the subsequent years; 4.5%, 5.5% and 6.0%. If this investor views a four-year maturity at 5.65% as equal to four consecutive one-year securities, what is his/her risk premium?
Fill in the blank(s) with the appropriate word(s).
In 2016, there was no change in inventories, which implies that GDP was ________ in 2016.
A. less than final sales B. zero C. greater than final sales D. exactly equal to final sales