Given the following diagram:
If the actual market price were fixed at $6 per unit in the above diagram
A. There would be a shortage of 40 units.
B. There would be a surplus of 40 units.
C. There would be a shortage of 20 units.
D. There would be a surplus of 20 units.
Answer: C
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The two sectors of the economy in the simple circular flow model are
A) the employed and the unemployed. B) households and businesses. C) foreign markets and domestic markets. D) the private sector and the public sector.
International trade constantly increased throughout the twentieth century
a. True b. False Indicate whether the statement is true or false
A perfect monopoly:
A. restricts output to maximize profits. B. has no competition at all. C. has complete market control. D. All of these statements are true.
Higher interest rates motivate:
A. individuals to spend more on consumption goods. B. individuals to spend more on capital goods. C. firms to invest less in new factories and working capital. D. firms to invest more in new factories and working capital.