Suppose that at the current price, consumers would like to purchase 10 million large-screen televisions and 15 million are available. When the market coordinates the demand and supply for large-screen televisions, the price of large-screen televisions will:
A. stay the same.
B. rise.
C. be fixed by the government.
D. fall.
Answer: D
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Which of the following is an example of a topic studied by macroeconomists?
A) Utility maximization by a consumer B) Decision making by a producer C) Aggregate demand in an economy D) Price determination by a firm
Markets in which funds are transferred from those who have excess funds available to those who have a shortage of available funds are called
A) commodity markets. B) fund-available markets. C) derivative exchange markets. D) financial markets.
We generally expect the price elasticity of supply to be
A) zero. B) negative. C) positive. D) between -1 and +1.
Which of the following is not a solution to the problem of negative externalities due to pollution?
a. Create private property rights. b. Levy pollution taxes. c. Create obligatory controls. d. Reward the production of these products through subsidies. e. Establish strict limits on the amount of pollution allowed.