If there is a surplus
A) fewer producers want to sell the product because it is too scarce.
B) consumers will drive up the price further.
C) firms will drive up the price to enhance profits.
D) the price will decline to the equilibrium level.
D
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Refer to Figure 11-15. Suppose Hilda produces 100 gooseberry pies. What is the marginal rate of technical substitution of labor for capital when labor is increased from 10 to 20 hours?
A) 1 unit of capital B) 10 units of capital C) 14 units of capital D) 24 units of capital
If input prices increase, the supply curve for cheese will shift to the right
a. True b. False Indicate whether the statement is true or false
Which of the following observations is true?
a. Tax changes have no impact on the consumption schedule. b. Tax reduction shifts the consumption schedule upward. c. Changes in taxes have a multiplier effect on equilibrium GDP on the supply side. d. Tax increases increase equilibrium GDP.
Other things the same, a lower real interest rate decreases the quantity of
a. loanable funds demanded. b. loanable funds supplied. c. domestic investment. d. net capital outflow.