If, for a product, the quantity supplied exceeds the quantity demanded, the market price will fall until
A) the quantity demanded exceeds the quantity supplied. The market will then be in equilibrium.
B) quantity demanded equals quantity supplied. The equilibrium price will then be lower than the market price.
C) all consumers will be able to afford the product.
D) quantity demanded equals quantity supplied. The market price will then equal the equilibrium price.
Answer: D
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A consumer has maximized his or her utility by consuming
A) at the midpoint of the budget constraint line. B) at the midpoint of the demand curve. C) so that the total utility of all goods consumed is the same. D) so that the ratio of marginal utility to price is the same for all goods consumed.
Moving upward along an LM curve, velocity ________ because ________ remains constant while ________ rises
A) rises, real balances, real income B) rises, the interest rate, the price level C) rises, the interest rate, real balances D) falls, real balances, real income E) falls, real income, real balances
The use of resources in the most productive way possible to produce the goods and services that have the greatest total economic value to society is called:
A. economic quantity. B. innovation. C. efficiency. D. sustainability.
Europe may not be an optimum currency area because
A. financial markets are weak. B. fiscal transfers are weak. C. the countries do not trade very much with each other. D. people speak different languages.