Which of the following is true if equilibrium is present in a market?
a. Quantity demanded equals quantity supplied.
b. Quantity supplied exceeds quantity demanded.
c. There is generally either a shortage or a surplus.
d. Quantity demanded exceeds quantity supplied.
a. Quantity demanded equals quantity supplied.
You might also like to view...
Refer to the payoff matrix below. If each cell has a probability of occurrence of 0.25, what are Camp with Us' expected profits?
Camp with Us and Happy Campers compete in the market for campers. Each firm must decide each season if they are going to offer special financing or not. The above payoff matrix shows each firm's net economic profit at each pair of strategies.
A) $8.50
B) $4.25
C) $5.75
D) $7.25
A five-cent deposit on beer bottles
A) provides a positive incentive because it rewards people for recycling. B) provides a negative incentive because it punishes people who do not recycle. C) is an irrational policy, because it fails to take into account incentives. D) is an irrational policy, because it fails to take into account self-interest.
Using the data in the above table and assuming constant opportunity costs, it is correct to state that
A) the United States has a comparative advantage in producing cloth. B) Mexico has an absolute advantage in producing both food and cloth. C) the United States has a comparative advantage in producing both food and cloth. D) Mexico has a comparative advantage in producing cloth.
If the exchange rate measured in euros per dollar increases, then
A) the dollar depreciates relative to the euro. B) the euro appreciates relative to the dollar. C) the euro depreciates relative to the dollar. D) neither currency appreciates or depreciates.