At market equilibrium
A) demand equals supply.
B) quantity demanded equals quantity supplied.
C) surpluses are greater than shortages.
D) shortages are greater than surpluses.
Answer: B
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Globalization means that firms recruit top talent from the global talent pool. Globalization means that the payoffs won by the contest winners ________
A) increase in size B) do not change in size C) might increase, decrease, or not change depending on whether the demand for contests changes by more than, less than, or the same amount as the supply of contests. D) decrease in size
Because consumers value product variety
A) society must be more efficient with monopolistic competition than with perfect competition. B) the inefficiency and deadweight loss created by monopolistic competition is offset. C) in the long run, monopolistically competitive firms earn an economic profit. D) monopolistically competitive industries are efficient.
The essential functions of any central bank are:
A. managing the money supply, and acting as a lender of last resort. B. overseeing major business transactions, and managing the money supply. C. preventing the formulation of monopolies or other market failure, and acting as a lender of last resort. D. collecting taxes, and managing the supply of money.
The price of oranges falls. What happens in the market for apples, which are a substitute for oranges?
A) The equilibrium price falls and the equilibrium quantity rises. B) The equilibrium price rises and the equilibrium quantity falls. C) The equilibrium price and quantity rise. D) The equilibrium price and quantity fall.