Suppose that when the price of oranges is $3 per pound, the quantity demanded is 4.7 tons per day and the quantity supplied is 3.9 tons. In this case:
A. excess supply will lead the price of oranges to rise.
B. excess supply will lead the price of oranges to fall.
C. excess demand will lead the price of oranges to fall.
D. excess demand will lead the price of oranges to rise.
Answer: D
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A) increases; increases B) increases; decreases C) decreases; increases D) decreases; decreases
A person is unemployed if he works for a family business without pay
a. True b. False Indicate whether the statement is true or false
If a good can be consumed by one person without reducing its availability to others, then it is a ________ good.
A. pure public B. nonrival C. nonexcludable D. common
Exhibit 14-8 Aggregate demand and supply
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In Exhibit 14-8, when aggregate demand shifts from AD4 to AD5, the economy experiences:
A. cost-push inflation. B. cost-pull inflation. C. demand-push inflation. D. demand-pull inflation.