According to the graph shown, at a price of $5, there is a:
A. shortage of 10.
B. shortage of 20.
C. shortage of 30.
D. surplus of 20.
B. shortage of 20.
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Choose the best statement
A) GDP equals aggregate expenditure and equals aggregate income. B) An increase in government purchases increases aggregate expenditure but does not change GDP. C) An increase in compensation of employees increases aggregate income but does not change GDP. D) GDP always equals aggregate expenditure and sometimes equals aggregate income.
Suppose a worker in Argentina can produce either 20 units of cloth or 2 bottles of wine per day, while a worker in Chile can produce either 24 units of cloth or 12 bottles of wine per day. If Argentina transfers 2 units of labor from wine to cloth and Chile transfers 1 unit of labor from cloth to wine, the combined output will be:
a. 16 bottles of wine and 8 units of cloth. b. 16 bottles of wine and 16 units of cloth. c. 12 bottles of wine and 12 units of cloth. d. 8 bottles of wine and 16 units of cloth.
Trade can benefit everyone in society because it allows people to specialize in activities in which they have a comparative advantage
a. True b. False Indicate whether the statement is true or false
The imposition of a new excise tax will
A. increase equilibrium price and decrease equilibrium quantity. B. decrease equilibrium price and decrease equilibrium quantity. C. increase equilibrium price and increase equilibrium quantity. D. decrease equilibrium price and increase equilibrium quantity.