At the market clearing price
A) there is neither a shortage nor a surplus.
B) quantity supplied equals quantity demanded.
C) the supply and demand curves intersect.
D) all of the above are correct.
D
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What is the difference between an expenditure-changing policy and an expenditure-switching policy?
What will be an ideal response?
"Economic exploitation" is measured by:
a. the sum of all input costs, both direct and indirect. b. the difference between the value of output a worker adds and what she receives. c. the difference between a monopoly's profit and the profit of a competitive firm. d. the average wage of a skilled worker divided by the average wage of an unskilled worker.
A monopoly:
a. can increase price and increase output at the same time. b. can charge any price it wants and still sell all of its output. c. can sell any output it produces provided it accepts the market price. d. must lower price in order to increase output. e. faces a perfectly elastic demand curve.
The money multiplier works best if all transactions in the economy are made through the banking system
a. True b. False Indicate whether the statement is true or false