Suppose roses are currently selling for $20 per dozen, but the equilibrium price of roses is $30 per dozen. We would expect a
a. shortage to exist and the market price of roses to increase.
b. shortage to exist and the market price of roses to decrease.
c. surplus to exist and the market price of roses to increase.
d. surplus to exist and the market price of roses to decrease.
a
You might also like to view...
Disposable income ________ when ________
A) decreases; taxes increase B) decreases; transfer payments increase C) increases; government expenditures decrease D) decreases; aggregate income increases
When economists and government officials speak about the money supply, they usually mean M2
a. True b. False
Taxes that are enacted to mitigate the effects of negative externalities are sometimes called
a. control taxes. b. command levies. c. Pigovian taxes. d. Marshallian taxes.
Which of the following is incorrect regarding tax revenues?
A. they increase during economic expansions B. they increase during recessions C. they change with changes in the tax rate D. they are a revenue source in the government's budget