The equilibrium price of a good occurs if the
A) quantity of the good demanded equals the quantity of the good supplied.
B) quantity of the good demanded is greater than the quantity of the good supplied.
C) quantity of the good demanded is less than the quantity of the good supplied.
D) demand for the good is equal to the supply of the good.
E) price of the good seems reasonable to most buyers.
A
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Under monopoly, resources are allocated as efficiently as in perfect competition.
Answer the following statement true (T) or false (F)
Trade makes costs
a. higher and reduces the variety of goods and services available. b. higher but raises the variety of goods and services available. c. lower but reduces the variety of goods and services available. d. lower and raises the variety of goods and services available.
In 2014, a farmer grows and sells $3 million worth of corn to Big Flakes Cereal Company. Big Flakes Cereal Company produces $8 million worth of cereal in 2014, with sales to households during the year of $7 million. The unsold $1 million worth of cereal remains in Big Flake Cereal Company's inventory at the end of 2014 . The transactions just described contribute how much to GDP for 2014?
a. $3 million b. $7 million c. $8 million d. $11 million
Which of the following examples shows a coordination problem with monetary policy?
a. Five months after the Fed decreases the money supply, consumer confidence in investing plummets. b. When the Fed decreases the money supply, the government increases purchases. c. After the Fed increases the money supply, pension funds decrease their interest rates. d. After the Fed increases the money supply, the government realizes the MPC estimate was too high.