Market equilibrium refers to a situation in which market price
a. is high enough to allow firms to earn a fair profit.
b. is at a level where there is neither a shortage nor a surplus.
c. is low enough for consumers to buy all that they want.
d. is just above the intersection of the market supply and demand curves.
Ans: b. is at a level where there is neither a shortage nor a surplus.
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In Egypt, in 1970, the Aswan Dam was completed. By preventing the annual flood of the Nile (thereby providing millions of acres of arable land) and by providing electricity, the dam was expected to raise the living standard of the Egyptian people—and it has. However, it has also led to a rise in the water table, which causes Egypt’s limestone structures, including the pyramids, to absorb more salt water and to suffer serious erosion from crystallized salts. Combined with air pollution and traffic vibration, this erosion is turning the pyramids to dust. Economists analyze this type of problem with the concept of
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A. Canadian prices decrease ? Canadian exports decrease ? U.S. prices increase. B. Canadian prices decrease ? Canadian exports decrease ? U.S. prices decrease. C. Canadian prices increase ? Canadian exports decrease ? U.S. prices increase. D. Canadian prices increase ? Canadian exports increase ? U.S. prices decrease.