When quantity supplied is equal to quantity demanded
a. the demand curve is identical to the supply curve
b. both the demand curve and supply curve are vertical
c. the market is in equilibrium and price is the market-clearing price
d. price is zero
e. excess demand and excess supply are equal to price
C
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If the price of mozzarella cheese (an ingredient in pizza) declines, there would be:
What will be an ideal response?
Before the Industrial Revolution, living standards in the world
A. were relatively stagnant for long periods of time. B. were declining because of rapid increases in population. C. were already rising significantly for many decades. D. are not known, for lack of reliable records from that period.
Suppose a farmer raising beef is making a normal profit. Then, because of a scare about mad cow disease, the demand for beef decreases drastically. What happens to the profits of the beef farmer in the short run and in the long run?
What will be an ideal response?
If there is an improvement in technology that affects only Aggregate Supply and a nation's wealth falls due to a sagging stock market, then:
a. Price index falls, and real GDP rises. b. Price index falls, and the change in real GDP is uncertain. c. Price index falls, and real GDP falls. d. The change in price index is uncertain, and real GDP rises. e. The change in price index is uncertain, and real GDP falls.