Which of the following occurs when a shortage occurs in the market for a good?
a. Quantity demanded exceeds quantity supplied and the market mechanism pushes the price up, which in turn encourages more production and less consumption.
b. Quantity supplied exceeds quantity demanded and the price falls, which encourages more production and less consumption.
c. Quantity demanded exceeds quantity supplied and the market mechanism pushes the price down, which encourages more production and less consumption.
d. Quantity supplied exceeds quantity demanded and the price rises, which encourages more production and less consumption.
A
You might also like to view...
A sole proprietorship is limited to how many owners?
A) 1 B) 2 C) 10 D) There is no limit to the number of owners.
If the output gap is constant at minus 2 and the inflation rate has fallen from 6 percent to 5 percent, then next period's short-run aggregate supply curve might be ________
A) ? = 5 - 0.5 (13 - 15) B) ? = 5 + 0.5 (13 - 15) C) ? = 4 + 0.5 (13 - 15) D) ? = 5 + 2 (11 - 15) E) none of the above
If both the demand and supply curves for computers shift to the right, the price of computers may rise, fall, or remain unchanged
a. True b. False
Assume that the expectation of declining housing prices cause households to reduce their demand for new houses and the financing that accompanies it. If the nation has low mobility international capital markets and a flexible exchange rate system, what happens to the quantity of real loanable funds per time period and GDP Price Index in the context of the Three-Sector-Model?
a. The quantity of real loanable funds per time period falls, and GDP Price Index rises. b. The quantity of real loanable funds per time period falls, and GDP Price Index falls. c. The quantity of real loanable funds per time period rises, and GDP Price Index falls. d. The quantity of real loanable funds per time period falls, and GDP Price Index remains the same. e. There is not enough information to determine what happens to these two macroeconomic variables.