In the graph shown above, at a price of $3.00
A. there is a shortage.
B. there is a surplus.
C. quantity supplied is greater than quantity demanded.
D. None of these choices are correct.
A. there is a shortage.
You might also like to view...
Do markets solve all of society’s problems?
A. Yes, markets are efficient and work well under nearly all circumstances. B. Yes, markets solve the problems of production and distribution. C. No, they do not solve problems such as unemployment and inflation. D. No, they hardly solve any problems at all. E. Uncertain, economic theory has no answer to this question.
If firms are experiencing falling inventories, one can expect that firms will cut production
a. True b. False Indicate whether the statement is true or false
An increase in the quantity of resources available
A) shifts the PPF leftward. B) shifts the PPF rightward. C) moves the economy to a new point up along a given PPF. D) moves the economy to a new point down along a given PPF.
The net cost to society from prohibiting the operation of a competitive market in equilibrium is
A. a deadweight loss. B. lost producer surplus only. C. lost consumer surplus only. D. lost producer profits only.