If there is a shortage in a free market, then
A) consumers will offer to pay a lower price for the good, and the price will fall toward the equilibrium level.
B) consumers will offer to pay a higher price for the good, and the price will rise toward the equilibrium level.
C) suppliers will decrease their output to match demand.
D) suppliers will accept any price below equilibrium.
B
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According to classical economists, unemployment exists because
A) it takes time and effort for someone to find a job. B) government activity causes unemployment. C) the minimum wage generates unemployment. D) workers are all identical.
The Industrial Revolution was centered in Great Britain, and the British
(a) tried to achieve a technological monopoly. (b) were willing to freely share industrial technology with their colonies but no other nations. (c) believed in free trade and the sale and export of technology to any nation that wanted to pay for it. (d) were willing to share their technology with other nations but not their colonies because they wished the colonies to specialize in the production of agriculture and raw materials for export to England.
Every fiscal or monetary action will affect the distribution of output as well as its volume
Indicate whether the statement is true or false
Which of the following will lead to a decrease in the firm's short-run demand for labor?
A) an increase in the price of the final product B) an increase in price of the final product's substitute good C) a decline in labor productivity D) an increase in the number of buyers for the final product