If a surplus of a product currently exists in the market,
a. the market price is too low.
b. the quantity demanded exceeds the quantity supplied at the current price.
c. the quantity supplied exceeds the quantity demanded at the current price.
d. there is a shortage of the product.
e. there will be a tendency for the price to rise.
c
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Alice, Bud, and Celia can produce rubber bands in a perfectly competitive market. If they enter the market, the minimum average total cost for a bundle of rubber bands, for the three of them is $2, $3, and $4, respectively
If the market price is $2.10 per bundle, then A) all three of them will enter the market. B) only Alice will enter the market. C) Alice and Bud will enter the market. D) Bud and Celia will enter the market. E) Alice and Celia will enter the market.
Which of the following products would most closely fit the competitive price-taker model?
a. stereo systems-there are many reputable brands. b. beer-it has many consumers. c. eggs-there are many producers of this relatively homogeneous product. d. automobiles-there are substantial economies of scale in production.
Which of the following is most important for the achievement of higher income levels and living standards?
What will be an ideal response?
Investment spending, in economic terms, includes spending toward physical capital, machinery, new factories, and new housing.
Answer the following statement true (T) or false (F)