Suppose that when the price of broccoli is $4 per pound, buyers wish to buy 500 pounds per day and sellers wish to sell 800 pounds per day. In this case:
A. excess supply will lead the price of broccoli to fall
B. excess demand will lead the price of broccoli to fall
C. excess demand will lead the price of broccoli to rise
D. excess supply will lead the price of broccoli to rise
Answer: A
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If the price of apples decreases by 2 percent and causes apple consumption to increase by 4 percent, the price elasticity of demand is ____, indicating the demand is ____
a. 2, elastic b. 2, inelastic c. 0.5, elastic d. 0.5, inelastic
A decrease in the price of domestically produced industrial robots will be reflected in
a. both the GDP deflator and the consumer price index. b. neither the GDP deflator nor the consumer price index. c. the GDP deflator but not in the consumer price index. d. the consumer price index but not in the GDP deflator.
Finding both parties to a trade who have something the other party wishes to trade for is called a:
A. store of value. B. double coincidence of wants. C. medium of exchange. D. unit of account.
Banks destroy money when they:
A. fail to reissue loans that are paid off. B. clear checks against another bank. C. accept deposits of cash into checkable accounts. D. buy government bonds.