If the equilibrium price of an hour with a tax accountant is $65 and the market price is currently $55, then there is a
A. surplus of accountants.
B. shortage of accountants.
C. equilibrium.
B. shortage of accountants.
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Prices influence the distribution of income by making the distribution fairer
a. True b. False Indicate whether the statement is true or false
The long-run aggregate supply curve shifts to the left if there is a decrease in immigration
a. True b. False Indicate whether the statement is true or false
Which of the following is a disadvantage of government provision of a public good such as national defense? (i) The government does not know the exact willingness of consumers to pay for the public good. (ii) The free-rider problem is more likely to occur when the government provides a public good than when the private sector provides a public good. (iii) Taxpayers do not agree on the optimal
quantity of the public good that the government should provide. a. (i) only b. (i) and (ii) only c. (i) and (iii) only d. (i), (ii), and (iii)
In a perfectly competitive market that is in long-run equilibrium, a permanent leftward shift in the market demand curve
A) raises the price in the short run. B) raises profits in the short run. C) leads to new firms entering the market in the long run. D) lowers the price at first but then raises it as firms leave the market.