Suppose a market has an excess demand and price starts to rise. What will the rise in price cause?
A. A rise in both quantity supplied and quantity demanded
B. A fall in quantity supplied and a rise in quantity demanded
C. A fall in both quantity supplied and quantity demanded
D. A rise in quantity supplied and a fall in quantity demanded
Answer: D
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The market demand function for ice cream is Qd = 10 - 2P and the market supply function for ice cream is Qs = 4P - 2, where both quantities are measured in millions of gallons per year. What is the consumer surplus at the competitive market equilibrium?
A. $4.5 million B. $9 million C. $13.5 million D. $18 million
The marginal revenue product is
a. TR/P b. w/Q c. MPP × P d. MRP × P e. w × L
One example of a microeconomic question is, "Should unemployment benefits be increased?"
Answer the following statement true (T) or false (F)
Life insurance companies often give applicants a physical examination to prevent
A) the person from dying before obtaining the policy. B) signaling. C) adverse selection. D) profit maximization.