In the short run, whenever excess demand exists, it is necessary to
A. put the good on sale.
B. ration the good.
C. increase the supply of the good.
D. impose a price ceiling on the good.
Answer: B
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Tariffs and import quotas both decrease the amount of a good consumed and raise the price paid by domestic residents for the good
Indicate whether the statement is true or false
Economists generally agree that increases in the minimum wage increase employment
Indicate whether the statement is true or false
Refer to Figure 2-5. If the economy is currently producing at point Y, what is the opportunity cost of moving to point X?
A) 9 million tons of paper B) 5 million tons of paper C) 5 million tons of steel D) 19 million tons of steel
Beyond the point of efficient scale, marginal cost pulls the average total cost upward
a. True b. False Indicate whether the statement is true or false