If the market price falls from P0 to P1 in the above figure, then
A) a new equilibrium quantity is established.
B) there is a shortage equal to the distance EF.
C) there will be a further tendency for price to fall.
D) there is a surplus of goods on the market equal to the distance Q1, Q2.
B
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The investment demand curve is drawn with the ________ on the horizontal axis and the ________ on the vertical axis.
A. expected rate of return and interest rate; amount of investment B. amount of investment; disposable income C. amount of investment; expected rate of return and interest rate D. disposable income; amount of investment
An international financial crisis is most often caused by
A) foreign investments and loans being withdrawn from a nation. B) a drop in the value of the U.S. dollar. C) a nation's central bank lowering domestic interest rates. D) a government refusing to pay its dues to the United Nations.
The price elasticity of supply for toys is 0.36, so that a 1 percent increase in price would generate a
a. 0.36 percent increase in quantity supplied b. 3.60 percent increase in quantity supplied c. 0.36 percent decrease in quantity supplied d. 3.60 percent decrease in quantity supplied e. 1.36 percent increase in quantity supplied
In economics, scarcity implies
A) disutility. B) utility. C) choice. D) inefficiency. E) a, c, and d