A decrease in the demand for eggs results in a surplus of eggs at the original equilibrium price. Explain how market forces will act to eliminate the surplus
What will be an ideal response?
The price of eggs will fall. As it falls, the quantity of eggs supplied will fall and the quantity of eggs demanded will rise. Eventually, at the new market equilibrium price, quantity demanded will be equal to quantity supplied. The market will be in equilibrium.
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In the above figure, at the real wage rate of $50
A) there is a surplus of 100 billion hours per year. B) there is a shortage of 100 billion hours per year. C) there is a surplus of 60 billion hours per year. D) there is shortage of 20 billion hours per year.
How has growth in M2 minus the growth in real GDP compared to the inflation rate in the United States?
What will be an ideal response?
Positive statements can contain
A) opinions and conditions. B) facts and predictions. C) a mixture of facts and opinions. D) logical arguments mixed with statements of opinion.
Firm X owns both a grocery store and the parking lot outside the grocery store. In order to increase the traffic at the store, the store should
a. Decrease the prices on the goods sold in the store b. Increase the parking rates c. All of the above d. None of the above