Figure 4.2 illustrates the supply and demand for t-shirts. If the actual price of t-shirts is $7, there is an
A) excess supply of 8 t-shirts. B) excess supply of 10 t-shirts.
C) excess demand of 8 t-shirts. D) excess demand of 10 t-shirts.
C
You might also like to view...
Keynes and his followers believed that
A) the economy could not operate at any level of real Gross Domestic Product (GDP) less than full capacity. B) capitalism was one economic system that guaranteed full employment. C) wages and prices in the short run were flexible. D) there was no guarantee that a capitalist economy would reach a full employment equilibrium.
Suppose our tastes can be represented by the function 
. It is often observed that people become more rigid --- more set in their ways --- as they get older. What parameter is changing as we get older --- and how is it changing? (Explain.)
What will be an ideal response?
Higher price levels will eventually lead to lower interest rates as people reduce their demand for money
a. True b. False Indicate whether the statement is true or false
The self-interest model predicts that the outcome of the "ultimatum bargaining game" in which the allocator starts with $20 is that
A. the allocator will offer the receiver $0.01 and will propose to keep $19.99 for himself. B. the receiver will always reject the allocator's proposal. C. the allocator will offer the receiver $10 and keep $10 for himself. D. the allocator will always keep the full $20.