If the supply and demand curves cross at a price of $2, at any price above that, there will be
A. an equilibrium.
B. a crisis.
C. a surplus.
D. a shortage.
Answer: C
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Diseconomies of scale is a result of
A) mismanagement. B) difficulties of coordinating and controlling a large enterprise. C) specialization of labor, capital, and management. D) technological progress. E) larger fixed costs as the firm's production increases.
What is demand?
A) The idea that buyers will purchase more of a product as the price drops B) The price and quantity of a product at which the quantity demanded is equal to the quantity supplied C) The idea that producers will offer more of a product as the price rises D) The willingness and ability of buyers to purchase a product E) None of these
During the last decade, the United States ran the largest trade deficits in its history. These trade deficits imply:
A. a U.S. balance of payments equilibrium. B. a U.S. balance of payments deficit. C. nothing about the overall U.S. balance of payments. D. a U.S. private balance of payments surplus.
The figure above represents the relationship between output and cost in an industry with an external cost. Which line represents the marginal private cost (MC) curve?
A) Curve 1 B) Curve 2 C) the dotted line BC D) the y-axis E) the dotted line AB