In a competitive market, if the existing price is below the equilibrium price, market forces will drive the price:
a. Up and quantity supplied up
b. Down and demand down
c. Up and quantity supplied down
d. Up and supply up
Answer: a. Up and quantity supplied up
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The lowest wage for which a person is willing to supply labor is known as the
A) substitution wage. B) income effect. C) derived wage. D) reservation wage.
Why does a rent ceiling create an inefficient and unfair outcome in the housing market?
What will be an ideal response?
Another term for "don't put all your eggs in one basket" is
A) moral hazard. B) indirect finance. C) asymmetric information. D) portfolio diversification.
Historians typically disagree with which of the following contentions from Time on the Cross?
(a) Slavery was profitable for Southerners and consequently resulted in wealth accumulation. (b) Slavery was on the verge of extinction on the eve of the Civil War. (c) Slave owners were moral and treated slaves with kindness and high standards. (d) Slave breeding and sexual exploitation were myths and slave sales rarely broke up slave families.