Excess demand occurs:
A. when price is below the equilibrium price.
B. when price is above the equilibrium price.
C. whenever the market is not in equilibrium.
D. whenever the market is in equilibrium.
Answer: A
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Which of the following methods of restricting trade does NOT harm the overall economy?
A) a voluntary export restraint B) a tariff C) a quota D) Both answers A and B are correct. E) None of the above answers is correct because all the methods harm the overall economy.
Which of the following are ways of promoting a firm's product
a. Advertising b. Discount coupons c. End-of-aisle displays d. All of the above
The demand curves for firms in a purely competitive industry are perfectly elastic.
Answer the following statement true (T) or false (F)
Which of the following factors would indicate an inelastic demand?
A. The good is a necessity, rather than a luxury. B. The good represents a small fraction of the budget. C. Demand is measured over a shorter period of time. D. All of these