Suppose that a market for a product is in equilibrium at a price of $3 per unit. At any price below $3 per unit:
A. there will be an excess demand for the product.
B. there will be an excess supply of the product.
C. the quantity demanded of the product will be less than the quantity supplied of that product.
D. there will be a surplus of that product.
Answer: A
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Suppose we have an economy in which G = 1100, t = 0.26, Y = 3800, and YN = 4000. At Y the cyclical deficit is
A) 60. B) 112. C) -172. D) -52. E) 52.
The theory of consumer behavior is based on certain assumptions. The set of four basic assumptions includes:
A) completeness. B) transitivity. C) intransitivity. D) Both A and B are correct. E) Both A and C are correct.
The unemployment rate will increase whenever there is a(n):
a. increase in the number of persons classified as unemployed. b. increase in the number of unemployed persons relative to the size of the labor force. c. increase in the size of the U.S. population and there is no change in the number of persons classified as employed. d. reduction in the size of the labor force. e. reduction in the size of the civilian labor force while the number of unemployed decreases.
Unlike the GDP deflator, the CPI does not consider goods and services purchased by business and government
a. True b. False Indicate whether the statement is true or false