Use the following general linear demand relation:Qd = 680 - 9P + 0.006M - 4PRwhere M is income and PR is the price of a related good, R. If M = $15,000 and PR = $20 and the supply function is Qs = 30 + 3P , then, when the price of the good is $60,
A. there is equilibrium in the market.
B. there is a shortage of 60 units of the good.
C. there is a surplus of 60 units of the good.
D. the quantities demanded and supplied are indeterminate.
Answer: C
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The figure above shows the U.S. demand and U.S. supply curves for cherries. Suppose the world price of cherries is $2 per pound. At this price, U.S. consumption of cherries will equal
A) 200,000 pounds. B) 400,000 pounds. C) 600,000 pounds. D) 800,000 pounds. E) 0 pounds.
Which of the following is a statement of positive economics?
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In fractional reserve banking:
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If individuals will no longer accept a currency, is it still considered to be money? a. No, because one of the main characteristics necessary for something to serve as money is that it must be generally acceptable. b. No, because of Gresham's Law
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