Figure 4.2 illustrates the supply and demand for t-shirts. If the actual price of t-shirts is $10, we would expect that:
A. demand will decrease until quantity demanded equals quantity supplied.
B. supply will increase until quantity demanded equals quantity supplied.
C. price will increase until quantity demanded equals quantity supplied.
D. there will be no change in the price since the market is in equilibrium.
Answer: D
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Refer to Figure 3-8. The graph in this figure illustrates an initial competitive equilibrium in the market for apples at the intersection of D1 and S1 (point A). If there is a shortage of apples, how will the equilibrium point change?
A) There will be no change in the equilibrium point. B) The equilibrium point will move from A to B. C) The equilibrium point will move from A to C. D) The equilibrium point will move from A to E.
A positive economic statement simply describes what is
Indicate whether the statement is true or false
During the past quarter of a century, the world's extreme poverty rate (per capita income of less than $1.25 per day) has
What will be an ideal response?
A difference between biology and economics is that
A. economists use models and biologists use theories. B. economics explains events while biology predict events. C. biologists often use laboratory experiments and economists do less often. D. biologists use the scientific method while economists do not.