Which of the following is evidence of a shortage of walnuts?
A) The equilibrium price of walnuts falls due to a decrease in demand.
B) The quantity of walnuts demanded is greater than the quantity supplied.
C) Firms lower the price of walnuts.
D) The price of cashews is lowered in order to make up for the walnut shortage.
B
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A cost paid in money is
A) not an opportunity cost. B) an implicit cost and an opportunity cost. C) an explicit cost and an opportunity cost. D) not an accounting cost. E) an explicit cost but not an opportunity cost.
An increase in aggregate demand causes an increase in ________ only in the short run, but causes an increase in ________ in both the short run and the long run
A) real GDP; real GDP B) real GDP; the price level C) the price level; real GDP D) the price level; the price level
If the price of a product falls below average total cost in the short run, the firm
a. has an economic profit b. cannot cover total fixed costs c. experiences a loss d. must always shut down e. should expand output until MC = MR
A higher rent ________ lead to an increase in the quantity of land supplied.
A. will definitely B. will probably C. may D. will not