Assume in a competitive market that price is initially below the equilibrium level. We can predict that price will:
A. decrease, quantity demanded will decrease, and quantity supplied will increase.
B. decrease and quantity demanded and quantity supplied will both decrease.
C. increase, quantity demanded will increase, and quantity supplied will decrease.
D. increase, quantity demanded will decrease, and quantity supplied will increase.
Answer: D
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Deadweight loss results from too few or too many resources used in a given market
a. True b. False Indicate whether the statement is true or false
When the price level rises in the United States, there is increased demand for loanable funds, ceteris paribus. Which concept is exemplified?
a. foreign trade effect b. transfer payment effect c. wealth effect d. interest rate effect
Answer the following questions true (T) or false (F)
1. For a person to have a comparative advantage in producing a product, she must be able to produce that product at a lower opportunity cost than her competitors. 2. It is possible to have a comparative advantage in producing a good or service without having an absolute advantage. 3. If Tanisha can audit more tax returns in one hour than Libby, then Tanisha has an absolute advantage in auditing tax returns.
No tax can lead the economy to higher levels of efficiency.
Answer the following statement true (T) or false (F)