Refer to the information provided in Figure 3.18 below to answer the question(s) that follow.
Figure 3.18Refer to Figure 3.18. The market is initially in equilibrium at Point A. If demand shifts from D1 to D2 and the price of burritos remains constant at $3.00, there will be
A. an excess supply of 150 million pounds of burritos.
B. an excess demand of 100 million pounds of burritos.
C. an excess supply of 50 million pounds of burritos.
D. an excess demand of 150 million pounds of burritos.
Answer: D
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The standard of living is measured by
A) employment. B) the population. C) real GDP per person. D) real GDP. E) employment per person.
If P denotes the price of goods and services measured in terms of money, then
a. 1/P represents the value of money measured in terms of goods and services. b. P can be interpreted as the inflation rate. c. the supply of money influences the value of P, but the demand for money does not. d. All of the above are correct.
If the supply curve for land was a vertical line, then any payment made for land would be considered
A) as economic rent. B) as economic lease. C) as economic interest. D) as an opportunity lease payment.
Which formula can be used for approximating the real interest rate when the inflation rate is low?
a. Nominal Interest Rate + Expected Inflation. b. Nominal Interest Rate + Expected Deflation. c. Nominal Interest Rate – Expected Inflation. d. None of the above is suitable.