When market price is higher than the equilibrium price, a surplus is created. This will put downward pressure on price, causing quantity demanded to increase and quantity supplied to decrease until equilibrium is reestablished
Indicate whether the statement is true or false
TRUE
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In the figure above, suppose a subsidy is provided to private colleges. What amount of subsidy will ensure the efficient number of students?
A) $10,000 B) $25,000 C) $15,000 D) $5,000 E) $20,000
C = 2,800 + 0.9y
I = 750 G = 1,200 NX = 150 Given the equations for C, I, G, and NX above, what is the equilibrium level of GDP (Y)? What will be an ideal response?
Securitized loans
What will be an ideal response?
The revealed preference approach refers to:
A. asking consumer to reveal their preferences using survey methods. B. estimating demand curves by using data on individual consumers. C. a statistical method used to estimate demand curves. D. a method of gathering information about consumer's preferences by observing their actual choices.