If the actual market price were fixed at $15 per unit in Figure 3.2,
Figure 3.2 Supply and DemandÂ
A. There would be a shortage of 40 units.
B. There would be a shortage of 20 units.
C. There would be a surplus of 20 units.
D. There would be a surplus of 40 units.
Answer: D
You might also like to view...
Elasticity of demand will ____ as the availability of substitutes ____
a. increase; decreases b. decrease; increases c. increase; increases d. remain unchanged; decreases
As the Asian financial crisis of 1997 began to spread, it became obvious to investors that Korean investments would provide lower returns than expected. What was the impact of such a realization on the foreign exchange market?
a. The supply of Korean won decreased as people tried to withdraw their Korean investments. b. The price of dollar in terms of Korean currency decreased as people invested more in U.S. assets. c. The demand for dollars decreased as investors realized that there is a worldwide crisis going on. d. The demand for dollars increased as investors put their money in U.S. and other foreign assets. e. The demand for Korean won increased as investors decided to invest in Korean assets.
According to the quantity theory of money, if M's growth is less than Q's, then
a. V falls b. V rises c. P stays the same d. P falls e. P rises
Under communism, _____________ owns and operates most of the means of production and distribution.
Fill in the blank(s) with the appropriate word(s).