A surplus occurs when the actual selling price is above the market equilibrium price
Indicate whether the statement is true or false
TRUE
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In the above figure, if the demand curve is D2, then
A) the equilibrium price will be P1 and the equilibrium quantity will be Q2. B) the equilibrium price will be P1 and the equilibrium quantity will be Q1. C) there will be a shortage equal to Q2 - Q1. D) an increase in price will shift the demand curve to D3.
Refer to Table 4-7. If a minimum wage of $11.50 is mandated there will be a
A) shortage of 40,000 units of labor. B) surplus of 20,000 units of labor. C) surplus of 40,000 units of labor. D) shortage of 20,000 units of labor.
When an economic unit limits the scope of its productive efforts instead of trying to produce everything it needs, it is engaging in
a. exchange. b. comparative production. c. specialization. d. self-sufficiency.
An increase in expected inflation will shift the short-run Phillips Curve
Indicate whether the statement is true or false