Answer the next question based on the following supply and demand schedules in units per week for a product.PriceQuantity DemandedQuantity Supplied$601004005014034040180280302202202026016010300100If demand increased by 100 units at each price level, and the government set a price ceiling of $40, then there will be
A. a surplus.
B. no shortage or surplus.
C. decrease in supply.
D. a shortage.
Answer: B
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A shift in demand toward the home country's goods would ________ the domestic real interest rate and ________ net desired saving (desired saving less desired investment) in the economy
A) lower; increase B) lower; decrease C) raise; increase D) raise; decrease
An example of a market where a Bertrand model would be plausible is the market for
A) oil. B) wheat. C) beer. D) sugar.
If the demand for the finished product increases, the:
a. demand for the resources will increase. b. demand for the resources will decrease. c. marginal factor cost will increase. d. marginal factor cost will decrease. e. MP will increase.
Which of the following statements about the real loanable funds market is not true?
a. Movements in the real risk-free interest rate cause significant changes in borrowers' willingness and ability to tap the domestic credit market if the demand is highly elastic. b. The more inelastic a nation's supply of real loanable funds, the less sensitive domestic savers, banks, foreigners, and governments are to changes in the real risk-free interest rate. c. Monetary policy is usually stronger in nations with elastic real loanable funds demands. d. Fiscal policy is usually weaker in nations with inelastic loanable funds demands. e. All of the above are true.