If a price is below equilibrium,
A. A shortage will cause the price to rise and the quantity supplied to increase.
B. A surplus will cause the price to fall and the quantity supplied to increase.
C. A surplus will cause the price to fall and the quantity supplied to decrease.
D. A shortage will cause the price to fall and the quantity supplied to decrease.
Answer: A
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Which of the following is likely to happen when the Fed raises the federal funds rate?
A) The long-run interest rate will fall. B) The labor demand curve shifts to the left. C) The volume of economic activity will increase. D) The labor demand curve shifts to the right.
Relative prices are an effective way of informing producers of
A) their marginal benefits of production. B) their marginal costs of production. C) both A and B. D) none of the above.
Having a well-known brand name associated with high quality is
A. is a value to consumers. B. can take a long time to establish. C. can be costly to maintain. D. All of these statements are true.
For a monopolist, if marginal revenue is $40, total revenue is
a. increasing b. decreasing c. zero d. positive e. negative