When used in a professional or technical sense, the law of supply and demand refers to
A. some vague influences on economic affairs.
B. the fact that prices go up when commodities are scarce.
C. the market forces that show how prices and quantities are determined.
D. the controls that regulate the amount of scarce goods that each consumer can purchase.
Answer: C
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How has the widespread availability of news on the web, which decreased the demand for newspaper workers, affected the wages of the works?
A. Wages decreased. B. Wages stayed the same. C. Wages increased. D. Wages are not affected by this.
If real GDP is $10 trillion and the velocity of circulation is 2, the quantity of money
A) is $2 trillion. B) is $5 trillion. C) is $20 trillion. D) cannot be determined from the information given.
In the above figure, Reggie's budget line rotates outward from BL1 to BL2. He initially consumes at point A. If his new consumption bundle is at point B, this implies that kiwi fruit and mangoes are
A) both lower in price. B) both inferior goods. C) neither substitutes nor complements. D) None of the above answers is correct.
A firm's resource at a given point in time can be defined as:
a. those investments made by it in profitable organizations. b. those tangible and intangible assets attached to it semipermanently. c. its ability to control the market price. d. its lobbying ability built over years of experience.