Which of the following is evidence of a shortage of chocolate?
A) Firms lower the price of chocolate.
B) The price of chocolate is raised in order to increase sales.
C) The equilibrium price of chocolate falls due to a decrease in demand.
D) The quantity of chocolate demanded is greater than the quantity supplied.
Answer: D
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The contagion that spread to South Korea, Indonesia, and other countries during the Asian financial crisis was:
A. speculative attacks forcing them to abandon their fixed exchange rates. B. competitive devaluation that led to plummeting exchange rates for all. C. competitive revaluation that led to severe overvaluation and collapse for all but South Korea. D. a result of employing a fixed exchange rate by China.
Exhibit 1A-7 Straight line relationship
According to Exhibit 1A-7, the relationship between annual income and air-travel expenditures is:
A. direct. B. inverse. C. complex. D. independent.
The demand curve facing an oligopoly will be less elastic
A. the larger its share of the market and the more differentiated the product. B. the smaller its share of the market and the more differentiated the product. C. the larger its share of the market and the less differentiated the product. D. the smaller its share of the market and the less differentiated the product.
To the extent that the Ricardian equivalence theorem is true, which of the conditions below will hold?
A) Increases in the government budget deficit will not affect aggregate demand. B) Investment spending will not be considered part of aggregate demand. C) The long-run aggregate supply curve will not be vertical. D) Exports will not be considered part of aggregate demand.