In response to a shortage the market price of a good will rise; as the price rises, the demand will decrease and supply will increase until equilibrium is reached

Indicate whether the statement is true or false


FALSE

Economics

You might also like to view...

Why does unemployment not go to zero during booms?

What will be an ideal response?

Economics

The United States is one of the least marketized economies in the world

a. True b. False Indicate whether the statement is true or false

Economics

Among young Americans aged 19 to 25, _____% have no health insurance

a. 11% b. 17% c. 22% d. 26%

Economics

If we let P = the domestic price of a basket of goods and Pf the foreign price of the same basket of goods, and ? = the nominal exchange rate of U.S. $/foreign currency the real exchange rate is best expressed as:

A. Pf / P × ? B. P / Pf ×?  C. ? × P / Pf D. Pf / P

Economics