When there is a surplus
A. quantity demanded is greater than quantity supplied.
B. quantity supplied is greater than quantity demanded.
C. quantity demanded is equal to quantity supplied.
B. quantity supplied is greater than quantity demanded.
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Which of the following is one of the necessary conditions for perfect competition?
A. Diminishing utility B. Indivisible setup costs C. No barriers to entry D. Differentiated products
If the price of gasoline increases and car dealers experience a decrease in demand for sport utility vehicles, then gasoline and sport utility vehicles are:
a. Substitutes b. Complements c. Inferior goods d. Unrelated goods
Most economists believe that the CPI overstates the actual changes in prices while the chain index for GDP understates them
Indicate whether the statement is true or false
Suppose the quantity demanded of cigarette cartons falls by 5% when prices are increased by 100%. The price elasticity of demand for cigarettes is
A) elastic and equal to 0.05. B) inelastic and equal to 0.05. C) elastic and equal to 20. D) inelastic and equal to 20.