When a shortage exists
A) the price is below the market clearing price.
B) quantity demanded exceeds quantity supplied.
C) an excess quantity demanded exists.
D) all of the above
D
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Many countries find it difficult to achieve economic growth. This is because economic growth
A) depends on technological change and technological change depends on noneconomic factors such as the growth rate of scientific knowledge. B) is not understood well by economists, so it is difficult to advise policy makers on the best policies to pursue. C) requires saving, and saving means less consumption today. A poor country may find it difficult to consume less today. D) appears to be predetermined and not subject to factors that policy makers can have any affect on.
Anna and Maria produce shirts and ties. The figure above shows Anna's PPF and Maria's PPF. Anna and Maria can achieve the gains from trade if Anna produces ________ and Maria produces ________
A) ties; shirts B) shirts and ties; only ties C) only ties; shirts and ties D) shirts; ties
Define price discrimination and explain why a monopolist would price discriminate?
What will be an ideal response?
If the supply curve of the fringe in the oligopoly market is highly elastic:
a. the dominant firm will command a higher share of market output. b. the price chosen by the dominant firm will be high. c. the dominant firm's profit will be lower. d. the market price for the commodity will be low.