If we say that a price is too high to clear the market, we mean that:
A. quantity demanded exceeds quantity supplied.
B. the equilibrium price is above the current price.
C. quantity supplied exceeds quantity demanded.
D. the price of the good is likely to rise.
Answer: C
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All of the following will cause a shift in the supply of jeans EXCEPT
a. a decrease in the prices of jeans. b. a decrease in the number of jean manufacturers. c. an increase in the cost of producing jeans. d. a per-unit government subsidy on the production of jeans.
What's the firm's contribution margin?
a. $12 b. $10 c. $8 d. $4
If the interest rate is 11%, $1500 received at the end of 12 years is worth how much today?
a. 500(1+.11)12 b. 500/(1 + .11)12 c. 500/(1 + 11)12. d. 500
If the demand increases in a perfectly competitive market, what will likely occur?
A. Firms will temporarily make a profit due to a higher price. B. Firms will enter the market in hopes of capturing some profits. C. The short-run supply curve will shift to the right, causing price to eventually fall. D. All of these are true.