When quantity demanded of a good is less than the quantity supplied at the prevailing market price,
a. the market is in equilibrium
b. the price of the good tends to rise
c. the price of the good tends to fall
d. the demand curve shifts rightward until the surplus is eliminated
e. the supply curve shifts leftward until the shortage is eliminated
C
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Today, firms in a perfectly competitive market are making an economic profit. In the long run, firms will ________ the market until all firms in the market are ________
A) exit; covering only their total fixed costs B) enter; making zero economic profit C) exit; producing at the minimum point on their long-run average cost curve D) enter; making zero normal profit
In the United States in 2014, the percentage of firms that employed more than 200 workers and offered health insurance as a fringe benefit to the workers was about
A) 29%. B) 42%. C) 61%. D) 98%.
Political scientist Elinor Ostrom won the 2009 Nobel Prize in Economics for demonstrating in detail how communities around the world
a. experience gaps in wealth and economic power. b. manage common pool resources effectively. c. see power as the ability to collaborate.
Politicians will often be able to gain from support of trade restrictions because
What will be an ideal response?