If the price is below the equilibrium level, then the quantity demanded will exceed the quantity supplied. This is known as ___________________.
a. excess supply
b. excess demand
c. ceteris paribus
d. a price ceiling
b. excess demand
If the price is below the equilibrium level, then the quantity demanded will exceed the quantity supplied. This is known as excess demand.
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Most markets in the United States:
A. have some degree of competitiveness, but are not perfectly competitive. B. have very few competitive features and so are regulated by the government. C. are monopolies. D. are perfectly competitive.
If prices rise within a country, then, other things equal, the value of a unit of domestic currency will:
a. rise in both the domestic and the foreign exchange markets. b. fall in both the domestic and the foreign exchange markets. c. rise in the domestic market and fall in the foreign exchange market. d. fall in the domestic market and rise in the foreign exchange market. e. fluctuate unpredictably in both domestic and foreign exchange markets.
Economists use the phrase "business cycle" when referring to fluctuations in
a. the rate of real output and employment. b. interest rates. c. the consumer price index. d. the general level of prices.
In events leading to the housing bubble, investment banks on Wall Street made money through the housing market by:
A. buying as many loans as possible to create mortgage-backed securities. B. offering low interest loans to those with very good credit. C. relying on banks to sell as few high-risk mortgages as possible. D. ensuring local banks were making good loans.