Market clearing price
A) refers to a movement along the demand curve.
B) refers to a supply curve.
C) exists at a the point at which quantity demanded equals quantity supplied.
D) refers to a surplus.
C
You might also like to view...
In 1906, the Hepburn Act
(a) Required the federal government to set "fair rates" for customers regardless of geographical location. (b) Required the federal government to set rates that promised a positive rate of return to railroads. (c) Granted the power to set maximum rates in the railroad industry to the federal government. (d) Granted the power to set maximum rates in the railroad industry to the leading railroad tycoons.
If quantity demanded for rice falls by 4% when price increases 8%, we know that the absolute value of the own-price elasticity of rice is: a. 2.5
b. 0.5. c. 2. d. 0.40.
The economic efficiency rule requires production of the quantity of output where:
a. profit is maximized b. marginal social benefit is maximized c. marginal social benefit equals marginal social cost d. the excess of marginal social benefit over marginal social cost is maximized
Refer to the information provided in Figure 3.18 below to answer the question(s) that follow.
Figure 3.18Refer to Figure 3.18. The market is initially in equilibrium at Point A. If demand shifts from D1 to D2 and there is an excess demand of 150 million pounds of burritos, the price of burritos would be
A. $1.50. B. $3.00. C. $4.00. D. $6.00.