When the price of a good is lower than the equilibrium price,
a. a surplus will exist.
b. buyers desire to purchase more than is produced.
c. sellers desire to produce and sell more than buyers wish to purchase.
d. quantity supplied exceeds quantity demanded.
b
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What happens to real money demand (rise, fall, no change) due to a change in each of the following factors?
(a) A tax on stock market transactions is introduced. (b) Computerized bond trading reduces transactions costs. (c) People's average level of wealth rises. (d) The threat of a recession increases the riskiness of stocks and bonds. (e) The interest rate paid on checking account balances declines. (f) The price level falls in a one-time jump.
A matched sale-purchase transaction is also known as a
A) reverse repo. B) discount loan. C) put option. D) federal funds loan.
Public employees (more frequently than private employees) tend to
A. begin and end their career with the same employer. B. have well-funded private savings plans. C. fall for Ponzi schemes. D. participate in defined contribution programs.
Bankers have a reputation for conservatism in politics, dress, and business affairs. Is there an economic rationale for this conservatism? Explain.
What will be an ideal response?