Market equilibrium occurs at that price for which
a. quantity supplied equals quantity demanded
b. cost equals the wages to labor
c. the surplus quantity drives increased demand
d. quantity supplied exceeds quantity demanded
e. quantity supplied is less than quantity demanded
A
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When marginal cost is positive, total cost is ________ as output increases
A) increasing B) decreasing C) constant D) negative E) undefined
According to the aggregate supply curve, what happens as the price level increases?
(A) Consumers increase their spending. (B) Profits decrease. (C) Real GDP falls. (D) Firms have more of an incentive to increase output.
The value of the marginal propensity to import for an open economy will realistically fall between zero and one.
Answer the following statement true (T) or false (F)
A shortage will occur if a ________ is set ________ the equilibrium price.
A. price floor; above B. price ceiling; above C. price ceiling; below D. price floor; below