Refer to the information provided in Figure 3.19 below to answer the question(s) that follow.
Figure 3.19Refer to Figure 3.19. The market is initially in equilibrium at Point A. If supply shifts from S1 to S2 and the price of cheeseburgers remains constant at $5.00, there will be
A. an excess demand of 4 cheeseburgers.
B. an excess supply of 6 cheeseburgers.
C. an excess demand of 6 cheeseburgers.
D. an excess supply of 3 cheeseburgers.
Answer: C
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An incentive conflict is when
a. The agent and the principal have identical incentives b. The agent has different incentives than does the principal c. The agent and the principal neither have any incentives to work hard d. None of the above
Which of the following is not true of a perfectly competitive market?
a. Firms experience constant returns to scale. b. Firms face significant barriers to entry. c. Economic profit is zero. d. Each firm chooses the quantity it wants to sell. e. Each firm knows the prices of outputs and inputs.
Some supporters of Keynesian economics advocate a ______ degree of government planning in all parts of the economy.
a. limited b. low c. moderate d. high
If one worker can pick $30 worth of grapes and two workers together can pick $50 worth of grapes, the:
A. marginal revenue product of each worker is $25. B. marginal revenue product of the first worker is $20. C. marginal revenue product of the second worker is $20.