If the current price of a good is $10, market demand is Qd = 400 - 20P, and market supply is Qs = -50 + 10P, then
A. more of the good is being produced than people want to buy.
B. a lower price will increase the shortage.
C. at the current price there is excess demand, or a shortage, of 150 units.
D. Both b and c
E. All of the above
Answer: D
You might also like to view...
If interest rates are lowered
A. people are more likely to save their money in banks. B. people are not affected by interest rates being lowered, only when interest rates are raised. C. entrepreneurs are more likely to expand a business by borrowing money. D. entrepreneurs are less likely to borrow money.
What is the "chicken tax" and why did it come into existence?
What will be an ideal response?
The typical total profit graphical presentation is shown as
A. a square. B. a rectangle. C. a hill, or mound. D. an S curve.
Microeconomic topics do not usually include: a. the impact of large government budget deficits on private investment spending. b. the determinants of the supply of wheat by farmers
c. the determinants of the demand for DVD players by consumers. d. the impact of a change in the price of leather used to manufacture shoes.