From Table 2.3, at the price of $2, there is a 
A. surplus of 4.
B. shortage of 2.
C. neither a shortage nor a surplus.
D. shortage of 4.
Answer: B
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The part of consumption that is independent of disposable income is called
A) autonomous consumption. B) fixed consumption. C) automatic consumption. D) personal consumption.
If the social marginal cost of a good is very high relative to the private marginal cost, then a monopoly will most likely
A) produce more than the social optimum. B) produce less than the social optimum. C) produce the social optimum. D) produce zero pollution.
In economic theorizing, common sense will always lead to the correct answer
a. True b. False Indicate whether the statement is true or false
A price floor will be binding only if it is set
A. equal to the equilibrium price. B. either above or below the equilibrium price. C. above the equilibrium price D. below the equilibrium price