If the prevailing price of shirts is $10 and at this price demanders demand 100 shirts while suppliers are willing to supply 110 shirts, there is a(n)
a. shortage at the $10 price.
b. surplus at the $10 price.
c. equilibrium in this market.
d. shortage if price were to rise above $10.
b
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A well-capitalized bank:
A) does not have stockholders' equity. B) is prone to bank runs. C) owns far more than it owes. D) only accepts deposits but does not advance loans.
As Sam moves rightward along his indifference curve, his marginal rate of substitution
A) is diminishing. B) is increasing. C) remains constant. D) shows the change in his income.
Japan has developed a comparative advantage in designing and producing automobiles. The source of its comparative advantage in these products is
A) technology. B) a strong central government. C) a favorable climate. D) abundant supplies of natural resources.
The Social Security program is like a private pension plan in that _____
a. it is a pay-as-you-go system b. it is voluntary c. benefits are a function of earlier contributions d. you have a legal right to your benefits