When a market is not in equilibrium:
A. a change in either supply or demand is required to reestablish equilibrium.
B. there is neither excess supply nor excess demand.
C. the economic motives of sellers and buyers will move the market to its equilibrium.
D. government intervention is required to achieve equilibrium.
Answer: C
You might also like to view...
_____ helps Congress evaluate the president's budget
a. The Treasury Department b. The Office of Management and Budget c. The Congressional Budget Office d. The Joint Economic Committee
The more block prices a monopoly can set instead of setting a single price, the
A) smaller the deadweight loss. B) the more producer surplus. C) the larger the total welfare. D) All of the above.
Saccharin and aspartame are both low-calorie substitutes for sugar. If saccharin is found to cause cancer,
a. the price of aspartame will increase b. the price of sugar will decrease c. the price of saccharin will increase d. the demand curves for aspartame and sugar will shift leftward e. aspartame and sugar will be complements
Figure 5-11
In Figure 5-11, a consumer is initially at point A. There is a price change and she moves to B. It follows that
a.
the demand for beer follows the law of demand.
b.
the demand for beer does not follow the law of demand.
c.
wine is an inferior good.
d.
the consumer is confused.