If the market price is above the equilibrium price:
a. A surplus will occur and producers will produce less and lower prices
b. Producers will make extremely high profits
c. A surplus will result and consumers will bid prices up
d. A shortage will occur and producers will produce more and lower prices
a. A surplus will occur and producers will produce less and lower prices
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Refer to Cournot Problem. In the Nash Equilibrium, each firm will receive producer surplus of
a. $300 b. $450 c. $600 d. $900
If the aggregate income of an island country is $8 million and income per capita is $5,000, the total population of the island is ________
A) 1,600 B) 106,000 C) 40,000 D) 20,000
A permanent change to a much higher price of gasoline would lead us to expect fewer gas guzzlers on the road, ceteris paribus
a. True b. False Indicate whether the statement is true or false
Which of the following will shift an economy's production possibilities curve inward?
A. an improvement in technology B. an increase in the unemployment rate C. a decrease in land, labor or capital D. a decrease in the unemployment rate