Why does equilibrium in the market for a traded good not occur where that country’s quantity demanded equals quantity supplied?
A. Because equilibrium occurs where demand equals supply.
B. Because markets are never in equilibrium.
C. Because some of the good is imported or exported.
D. Because there are several demand curves, and the market can’t choose between them.
E. All of the above are correct.
Answer: C
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The graph below represents the market for alfalfa. The equilibrium price is $7.00 per bushel, but the market price is $9.00 per bushel
Identify the areas representing consumer surplus, producer surplus, and deadweight loss at the equilibrium price of $7.00 and at the market price of $9.00.
Give three reasons why the U.S. economy is more stable since 1950
What will be an ideal response?
In a open economy, aggregate expenditures are the sum of personal consumption, investment, government, and net export expenditures
Indicate whether the statement is true or false
In order to sell an additional unit of its product, a monopolist must decrease price on all units
a. True b. False