Figure 4.2 illustrates the supply and demand for t-shirts. If the actual price of t-shirts is $7, we would expect that
A) supply will increase until quantity demanded equals quantity supplied.
B) price will increase until quantity demanded equals quantity supplied.
C) demand will decrease until quantity demanded equals quantity supplied.
D) there will be no change in the price since the market is in equilibrium.
B
You might also like to view...
Refer to the scenario above. The nominal GDP of the country in Year 1 was ________
A) $280,000 B) $2,200,000 C) $1,400,000 D) $540,000
Juan recently lost his job as a travel agent, which he has had for 20 years, because the demand for his services has fallen over time as more and more people book their vacations online
Unfortunately, Juan has not been able to find a new job because he lacks the skills needed to get hired in other industries where job growth is occurring. Juan is considered to be A) structurally unemployed. B) frictionally unemployed. C) cyclically unemployed. D) a marginally attached worker. E) not in the labor force.
Which of the following firms is most likely to use cost-plus pricing?
A) A firm that makes many products but has a small research and development budget, the cost of which can be easily assigned to the different product lines. B) A firm that sells one product and has a sizable research and development budget. C) A firm that makes several products and has a sizable research and development budget, the cost of which cannot be easily assigned to each product. D) A firm that makes one product.
If planned expenditure is below output, as the economy approaches equilibrium, ________
A) planned expenditure is falling B) output is rising C) saving is rising D) all of the above E) none of the above