Excess demand results in a surplus.
Answer the following statement true (T) or false (F)
False
You might also like to view...
An equilibrium in game theory in which the players make and share the monopoly profit is called
A) the Nash equilibrium. B) the cooperative equilibrium. C) a contestable market equilibrium. D) limit pricing.
Which of the following would cause the money supply in the United States to decrease?
a. an increase in reserve requirements b. a decrease in the discount rate c. a purchase of bonds by the Federal Reserve d. an increase in the world supply of gold
The classical model uses the assumption that
A. all wages and prices are flexible. B. economic markets are fragile and have no tendency to move towards an equilibrium. C. interest rates are not flexible. D. monopoly is widespread in the economy.
If your firm is producing a good at a level where marginal revenue equals marginal cost, and price is between average variable cost and average total cost, then in the short run your firm should:
A. shut down and suffer a loss equal to your fixed costs. B. continue to produce, but increase output. C. continue to produce at the same level of output. D. continue to produce, but decrease output.