A decrease in the supply of steel results in a shortage of steel at the original equilibrium price. Explain how market forces will act to eliminate the shortage
What will be an ideal response?
The price of steel will rise. As it rises, the quantity of steel supplied will rise and the quantity of steel demanded will fall. Eventually, at the new market equilibrium price, quantity demanded will be equal to quantity supplied. The market will be in equilibrium.
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The ________ book provides information of current economic conditions and is used by the Federal Reserve in formulating monetary policy
A) Red B) Blue C) Beige D) Green
Which of the following games is NOT analyzed with game theory?
A) State Lottery B) Poker C) Car Chases D) Auctions
To say that something is scarce means that:
a. it is no longer available in stores. b. it must be conserved at any cost. c. even the government cannot supply it. d. sufficient amounts of it available only at a zero price. e. not enough is available to satisfy people's wants at a zero price.
Which of the following is more likely to have perfectly elastic or nearly perfectly elastic demand?
A. the guitar produced by a master craftsman B. a textbook required for an economics course C. cotton produced by a Texas farmer D. the services offered by the only allergist in the community