The price of a good will tend to rise when
a. there is excess demand for the good.
b. the supply of the good increases.
c. demand for the good decreases.
d. there is excess supply of the good.
a. there is excess demand for the good.
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According to this Application, why did the recent decrease in oil prices have only a modest effect on economic growth?
A) Consumers may have saved the money that resulted from lower gasoline prices. B) There was less incentive to produce energy and invest in new capital and equipment. C) Government spending decreased significantly. D) Both A and B are correct.
Bid-rigging is more likely when
a. auctions are larger b. auctions are infrequent c. auctions generate different sets of potential bidders d. the auctioneer is paid a fixed fee rather than on commission
Why might well-educated economists disagree on appropriate public policy in some situations?
Economists believe having higher prices for scarcer resources promotes efficiency
a. True b. False Indicate whether the statement is true or false