When a market is in surplus, there is pressure for the price to move upward
a. True
b. False
Indicate whether the statement is true or false
False
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If you want to purchase a new sailboat in two years for $9,000, how much would you presently need to have in your bank account to have $9,000 in two years? Assume your bank account pays 3 percent interest
A) $8,484 B) $8,613 C) $8,738 D) $8,822
Select the phrase that correctly completes the following statement. "A decrease in the number of manufacturers caused a decrease in the supply of sailboats. As a result
A) the price of sailboats increased and the quantity of sailboats demanded decreased." B) the equilibrium quantity of sailboats increased." C) the price of sailboats increased and the demand for sailboats decreased." D) the price of sailboats increased. The higher price caused the supply of sailboats to increase."
When bank loan officers screen loan applicants to eliminate potentially bad risks, they are attempting to mitigate the problem of
A) adverse selection. B) moral hazard. C) interest rate risk. D) illiquidity.
Figure 3-6
In , suppose D1 and S1 indicate initial conditions in the market for ice cream. Which of the following changes would tend to cause a shift from S1 to S2 in the market for ice cream?
a.
an increase in the price of sugar, an ingredient used to produce ice cream
b.
a decrease in the price of frozen yogurt, a substitute for ice cream
c.
abnormally hot weather that temporarily increases consumer desire for ice cream
d.
a decrease in the price of milk, an ingredient used to produce ice cream