If a surplus exists in a market, then we know that the actual price is
a. above the equilibrium price, and quantity supplied is greater than quantity demanded.
b. above the equilibrium price, and quantity demanded is greater than quantity supplied.
c. below the equilibrium price, and quantity demanded is greater than quantity supplied.
d. below the equilibrium price, and quantity supplied is greater than quantity demanded.
a
You might also like to view...
If the market price ever drops below a firm's average variable costs at its profit-maximizing level of output the:
A. loss-minimizing quantity of output is zero. B. firm is not earning enough revenue to cover the variable costs of production. C. firm should shut down immediately. D. All of these are true.
The imposition of a binding price ceiling on a market causes
a. quantity demanded to be greater than quantity supplied. b. quantity demanded to be less than quantity supplied. c. quantity demanded to be equal to quantity supplied. d. the price of the good to be greater than its equilibrium price.
Which of the following shifts aggregate demand to the right?
a. Congress reduces purchases of new weapons systems. b. The Fed buys bonds in the open market. c. The price level falls. d. Net exports fall.
An advance in technology which increases labor productivity will shift the:
A. labor demand curve to the left. B. MFC curve to the left. C. MP curve downward. D. labor demand curve to the right.