In a purely competitive market, how would a surplus of a product be eliminated?
A. The price of the product would decrease
B. The price of the product would increase
C. The quantity supplied of the product would increase
D. The quantity demanded for the product would decrease
A. The price of the product would decrease
You might also like to view...
Which of the following changes best represents the effect of the oil embargo (a shut-off of oil from certain OPEC countries) of the 1970s on the U.S.?
a. A leftward shift of the long-run aggregate supply curve b. A rightward shift of the long-run aggregate supply curve c. A leftward shift of the aggregate demand curve d. A rightward shift of the aggregate demand curve e. A rightward movement along a given aggregate demand curve
In a "second-best" world
A. tariffs are economically optimal. B. private actions are dictated by government agencies. C. private actions do not lead to the best possible outcomes for society. D. social marginal cost of a transaction equals social marginal benefit.
When buying a piece of equipment, it is always best for the firm to pay cash instead of borrowing the funds since this renders the equipment less costly
Indicate whether the statement is true or false
A major source of revenues for state and local governments is _____
a. income taxes b. payroll taxes c. intergovernmental revenues d. estate taxation