The equilibrium price is the price
A. suppliers agree to charge.
B. where there are surpluses and shortages.
C. at which quantity supplied equals quantity demanded.
D. from which there is always a tendency to move away.
Answer: C
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What happens to the price elasticity of demand moving down along a downward-sloping, linear demand curve?
What will be an ideal response?
The Social Security program is financed directly from
A) voluntary contributions by the elderly. B) sales taxes on goods with inelastic demand. C) payroll taxes. D) poll taxes.
An example of a real-life rule that might constrain people's behavior is:
A. minimum wage legislation. B. having 24 hours in a day. C. the earth's limited supply of oil. D. All of these are examples of real-life rules.
Economic stabilization is best achieved by
a. fixing a tolerable point on the Phillips curve and staying there b. moderate shifts in the Phillips curve during periods of inflation c. moderate shifts in the Phillips curve during periods of unemployment d. fixing a tax rate that generates maximum tax revenue e. allowing the business cycle to run its course without government interference