Refer to the above figure. Excess quantity demanded will exist when
A) the price is between $0 and $6.
B) the price equals $6.
C) the price equals $10.
D) quantity demanded equals 3.
A
You might also like to view...
If no beautification projects were undertaken in a city except by private individuals or firms, the city would almost surely be less beautiful than otherwise comparable cities because
A) aesthetic standards vary so widely. B) it is extremely difficult to induce people to pay on a voluntary basis for the pleasure they receive from urban beautification projects. C) people may enjoy beauty, but they are not willing to pay for it. D) private individuals and firms generate more external costs than benefits.
If absolute PPP holds, then the real exchange rate must equal 1
Indicate whether the statement is true or false
Self correcting mechanism reveals that
a. real wages will increase if there is an increase in price. b. nominal wages will fall if there is inflationary gap. c. nominal wages will increase if there is recessionary gap. d. in the long run economy will be in equilibrium at potential GDP.
When it comes to macro-policy, most economists now agree that
a. policy should be constantly changing in response to business cycle conditions. b. policy changes should exert stimulus during inflationary booms and restraint during downturns. c. given our ability to forecast economic conditions, policy changes easily can be implemented in a timely manner. d. policy changes are difficult to time correctly, and therefore constant shifts in policy are likely to be a source of economic instability.