When a shortage exists in a market, sellers

a. raise price, which increases quantity demanded and decreases quantity supplied until the shortage is eliminated.
b. raise price, which decreases quantity demanded and increases quantity supplied until the shortage is eliminated.
c. lower price, which increases quantity demanded and decreases quantity supplied until the shortage is eliminated.
d. lower price, which decreases quantity demanded and increases quantity supplied until the shortage is eliminated.


b

Economics

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Regarding the price elasticities of demand, which of the following statements is true?

a. Price elasticities vary considerably from product to product b. Luxurious goods are generally less price elastic. c. Necessities are generally more price elastic. d. All of these statements are true.

Economics

Which of the following is NOT a pure public good?

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Economics