If the current price of a good is the same as that found at the intersection of the market demand and supply curves, then:
a. excess demand exists
b. excess supply exists.
c. price will rise.
d. price will fall.
e. the market is in equilibrium.
e
You might also like to view...
Eurobank activities cannot have any influence on domestic monetary practice since Eurodollars do not provide a means of payment
Indicate whether the statement is true or false
The supply curve for the monopolist
a. is horizontal. b. is vertical. c. is upward sloping. d. does not exist.
The figure above shows the market for iPods. Which of the following shifts the demand curve from D0 to D2?
A) a decrease in the price of iPods B) a decrease in the price of Zunes, a substitute for iPods C) an increase in the price of iPods D) a decrease in people's incomes if iPods are a normal good E) a requirement that all students at universities have an iPod
Economists closely follow the current account balance because they believe it can provide information on the future movement of
A) interest rates. B) gold flows. C) exchange rates. D) special drawing rights.