When the price of a good is higher than the equilibrium price,
a. a shortage will exist
b. buyers desire to purchase more than is produced.
c. sellers desire to produce and sell more than buyers wish to purchase.
d. quantity demanded exceeds quantity supplied.
c
You might also like to view...
A firm practices input substitution when it
A. retrains Joe the welder as a painter and Pat the painter as a welder. B. buys extra machines for its workers to use. C. allows fixed cost to become variable. D. replaces unskilled labor with automated machinery.
For economists, discrimination is difficult to rationalize because:
a. it is costly to those who discriminate. b. the firms can actually reap greater profits by discriminating between their workers. c. in a freely functioning labor market, there is no such thing as discrimination. d. economists know that in the real world, personal prejudices do not exist. e. wages will not be allowed to fall below their natural equilibrium rate.
The most glaring economic problem in the former Soviet Union was
A. a shortage of military goods. B. a surplus of military goods. C. a shortage of civilian goods. D. a surplus of civilian goods.
Exhibit 3A-1 Comparison of Market Efficiency and Deadweight Loss
As shown in Exhibit 3A-1, if the market is in equilibrium, then total surplus is represented by:
A. ABEFD + EFG B. ABEC + CEFD C. CDFE + EFG D. ABEFD - BEF