When a surplus exists in a market, sellers
a. raise price, which increases quantity demanded and decreases quantity supplied, until the surplus is eliminated.
b. raise price, which decreases quantity demanded and increases quantity supplied, until the surplus is eliminated.
c. lower price, which increases quantity demanded and decreases quantity supplied, until the surplus is eliminated.
d. lower price, which decreases quantity demanded and increases quantity supplied, until the surplus is eliminated.
c
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Discuss reasons why we see trade restrictions. Are any of these reasons valid?
What will be an ideal response?
Suppose a bank has $160,000 in deposits and a required reserve ratio of 10 percent. Then required reserves are
A. $1,600,000. B. $160,000. C. $16,000. D. $1,600.
The superstar phenomenon explains why professional athletes earn more than amateur athletes
a. True b. False Indicate whether the statement is true or false
Inflation is a:
a. One-time change in the general level of prices b. Sustained decline in the general level of prices c. Sustained rise in the general level of prices d. Movement of the economy toward full-employment