If market price is above equilibrium price,
A. quantity demanded is greater than quantity supplied.
B. quantity supplied is greater than quantity demanded.
C. quantity supplied is equal to quantity demanded.
B. quantity supplied is greater than quantity demanded.
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Currently the Fed targets
A) the inflation rate B) the exchange rate. C) the federal funds rate. D) both the monetary base and the federal funds rate simultaneously. E) the price level.
Why do investors hedge using futures contracts?
A) they are seeking to increase liquidity B) they are willing to pay for a reduction in risk C) in order to provide a counterparty to speculators D) they are more flexible than forward contracts
The Three Key Federal Reserve Entities
What will be an ideal response?
Which of the following is a characteristic of a competitive market?
a. There are many buyers but few sellers. b. Firms sell differentiated products. c. There are many barriers to entry. d. Buyers and sellers are price takers.