A surplus of a product will arise when price is:
A. below equilibrium, with the result that quantity supplied exceeds quantity demanded.
B. above equilibrium, with the result that quantity demanded exceeds quantity supplied.
C. below equilibrium, with the result that quantity demanded exceeds quantity supplied.
D. above equilibrium, with the result that quantity supplied exceeds quantity demanded.
Answer: D
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According to the textbook, which of the following methods for coordinating the supplies and demands for scarce goods tends to work best to enhance the freedom and power of people who want the goods?
A) A lottery B) Equal shares for all C) First come, first served D) Highest money bid E) Might makes right
A market is perfectly competitive even if firms have the ability to set their own price as long as the price difference reflects differences in the product
Indicate whether the statement is true or false
Recall the Application about the price competition between satellite and cable TV services to answer the following question(s).Recall the Application. In most cases where satellite TV service is introduced in an area with cable TV service, the quality of the cable TV service usually:
A. increases. B. decreases. C. initially increases, then decreases. D. is unaffected.
If a person is going to borrow $30,000 for a car and pay it off in monthly payments of $500 for 5 years, the internal rate of return is
A. 10%. B. 5%. C. 0%. D. 15%.