Which of the following best describes the process that occurs when the price of a good is below equilibrium?
B. The excess supply of the good provides an incentive for buyers to offer a higher price. These higher prices encourage sellers to supply more of the good.
C. The excess demand for the good provides an incentive for buyers to offer a lower price. These lower prices encourage sellers to supply less of the good.
D. The excess supply for the good provides an incentive for buyers to offer a lower price. These lower prices encourage sellers to supply less of the good.
A. The excess demand for the good provides an incentive for buyers to offer a higher price. These higher prices encourage sellers to supply more of the good.
You might also like to view...
An increase in aggregate demand results in a(n) ________ in the ________
A) recession; long run B) expansion; long run C) recession; short run D) expansion; short run
The slope of a curved line at a particular point is
a. always greater than the slope of a straight line at the same point. b. always smaller than the slope of a straight line at the same point. c. defined as the slope of the straight line representing the average values for the entire curve. d. defined as the slope of the straight line that is tangent to the curve at that point.
Figure 11-2
Which graph in Figure 11-2 best reflects a Keynesian's view of the impact of raising taxes on saving?
a.
1
b.
2
c.
3
d.
4
Say 6 homogenous consumers have individual willingness to pay P = 20 - 4Q. If the marginal cost of providing Q is 6Q, the optimal amount of Q is
A. 0. B. 2. C. 6. D. 4.