If the quantity demanded for a product exceeds the quantity supplied, the market price will rise until
A) the quantity demanded equals the quantity supplied. The product will then no longer be scarce.
B) quantity demanded equals quantity supplied. The market price will then equal the equilibrium price.
C) only wealthy consumers will be able to afford the product.
D) quantity demanded equals quantity supplied. The equilibrium price will then be greater than the market price.
B
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The median household income is
A) the income that separates households into two equal groups. B) the most common household income. C) the mean household income. D) the average household income.
The increase in quality bias in the consumer price index refers to the idea that price increases in the CPI reflect pure inflation, but ________ quality increases. This causes the CPI to ________ the cost of the market basket
A) not; overstate B) also; understate C) also; overstate D) not; understate
Individuals have a tradeoff between leisure and work. When income from working is taxed, the cost of leisure is reduced in relative terms
a. True b. False Indicate whether the statement is true or false
The marginal tax rate is the total tax paid divided by the amount of taxable income
a. True b. False Indicate whether the statement is true or false