If price is initially above the equilibrium level,
A) the supply curve will shift rightward.
B) the supply curve will shift leftward.
C) excess supply exists.
D) all firms can sell as much as they want.
C
You might also like to view...
Can a country have a trade deficit forever?
What will be an ideal response?
According to the Coase theorem, if transactions and negotiations are costless:
a. people would arrive at agreements that maximize their individual benefits. b. people would arrive at agreements that maximize the total economic value. c. people would arrive at agreements that minimize their individual costs. d. people would arrive at agreement that minimize the total social cost.
Explain how an increase in the American demand for German goods leads to a change in the German Mark relative to the U.S. dollar
Which of the following would not move either the supply or the demand curve in the market for housing?
A. An increase in the cost of home insurance B. An increase in the number of people who are retiring C. An increase in real-estate prices D. A possibility of higher construction costs