If there is a surplus of a product, its price:
A. is below the equilibrium level.
B. is above the equilibrium level.
C. will rise in the near future.
D. is in equilibrium.
Answer: B
You might also like to view...
The table above gives the utility Andy receives from different quantities of vanilla ice cream cones. Complete the table
What will be an ideal response?
A firm should use marginal analysis when making a price-output decision.
Answer the following statement true (T) or false (F)
Sophia sits behind Gabriel on an airplane. Gabriel owns the right to recline his seat and values this right at $10 . Sophia values a non-reclined seat in front of her at $20 . Assuming no transaction costs, an efficient solution would be for Sophia to pay Gabriel $15 to not recline his seat
a. True b. False Indicate whether the statement is true or false
Based on the figure below. Starting from long-run equilibrium at point C, a tax cut that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies. 
A. D; C B. B; C C. B; A D. D; B