If the quantity supplied in a market exceeds the quantity demanded in a market, we would expect price to:
A) stay the same.
B) increase.
C) decrease.
D) rise in order to clear the market.
Answer: C) decrease.
You might also like to view...
Stock prices can be described as “random walks” if there is no relationship between one day’s prices and the following day’s prices.
Answer the following statement true (T) or false (F)
Manufacturers produce only what the market is willing to pay for.
Answer the following statement true (T) or false (F)
In the short run, a decrease in planned investment will ________.
A. raise the unemployment rate and reduce the rate of inflation B. reduce both the unemployment rate and the rate of inflation C. raise both the unemployment rate and the rate of inflation D. reduce the unemployment rate and raise the rate of inflation
Which of the following statements are correct about the age-earnings cycle?
A) Earnings generally increase up till age 30 and then steadily decrease. B) Earnings increase throughout a prison's lifetime until they reach retirement. C) Earnings increase with age because workers become more productive as they age until around 50 years. Around 50 the effects of aging outweighs the further increases in productivity. D) Since every person is different we can reach no general conclusions about the age-earnings cycle.