If a shortage of a good exists in the market,
a. the price is higher than its equilibrium level
b. the quantity demanded is less than the quantity supplied
c. the quantity demanded exceeds the quantity supplied
d. there is an excess supply of the good
e. the price will fall
C
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In the figure above, an increase in the supply of oil would result in a movement from
A) point a to point e. B) point a to point b. C) point a to point c. D) point a to point d.
Which of the following statements about an increasing-returns-to-scale industry is not true?
a. It will tend to concentrate production in the hands of a very few large firms. b. Firms in the industry face higher costs per unit of production as their level of output increases. c. Opportunity costs may fall with the level of output. d. Proponents of strategic trade policy contend that tariffs can be used to stimulate production by a domestic industry capable of achieving increasing returns to scale. e. The costs of producing a unit of output fall as more output is produced.
If the economy is suffering a recession and high unemployment, expansionary monetary policy can help stimulate aggregate _________________.
a. demand b. sales c. supply d. production
The curve that best helps a firm determine which output level will maximize profits is the
a. total product curve b. marginal product curve c. average total cost curve d. marginal cost curve e. average variable cost curve