A surplus tends to put ________ pressure on the price of the product, which ________ the quantity supplied
A) upward; increases
B) upward; decreases
C) downward; increases
D) downward; decreases
D
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Refer to Figure 11.1. Assume the economy is in equilibrium at 1 = 0. Other things equal, an unexpected large increase in the price of oil will result in a movement from point ________ to point ________
A) A; B B) B; A C) A; C D) A; D
The global capital market is very competitive and efficient
Indicate whether the statement is true or false
In this economic growth and production possibilities curve, operating under the new production possibilities curve will always produce more than the old one, provided that the ______.
a. economy in the new curve is inefficient
b. economy for both curves is efficient
c. same technology is used in the economy of both curves
d. economy in the new curve uses fewer resources
Businesses go to credit markets in order to
A. obtain financial assets that can be used to buy capital. B. obtain capital so they can earn rents. C. channel their savings into investments. D. obtain capital.