Refer to the diagram, which shows demand and supply conditions in the competitive market for product X. If supply is S 1 and demand D 0 , then
A. at any price above 0G a shortage would occur.
B. 0F represents a price that would result in a surplus of AC.
C. a surplus of GH would occur.
D. 0F represents a price that would result in a shortage of AC.
D. 0F represents a price that would result in a shortage of AC.
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Explain three ways we can use microeconomic analysis
What will be an ideal response?
When the Fed sells $100 million of securities to a commercial bank, the
A) monetary base increases. B) money supply increases. C) bank's reserves decrease. D) required reserve ratio decreases. E) bank's reserves do not change.
What was not a reason for the decline of the Deep South between the Civil War and 1890?
a. Elimination of economies of scale in the production process. b. An extended period of droughts and bad weather. c. Significant withdrawal of labor from the fields, especially by women and children. d. Increased competition from cotton suppliers in other nations.
If market price is above equilibrium price,
A. quantity demanded is greater than quantity supplied. B. quantity supplied is greater than quantity demanded. C. quantity supplied is equal to quantity demanded.