If the current market price is above the equilibrium price, then:
a. the quantity demanded exceeds the quantity supplied.
b. there will be a shortage.
c. the quantity supplied will exceed the quantity demanded.
d. the price will have to increase to establish equilibrium.
e. demand will shift to the left.
c
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Which of the following is NOT a necessary condition for long-run equilibrium under perfect competition?
A) No firm has an incentive to enter the market. B) No firm has an incentive to exit the market. C) Prices are relatively low. D) Each firm earns zero economic profit. E) Each firm is maximizing profit.
Utils are used by economists to measure the satisfaction a person obtains from consuming a good
a. True b. False Indicate whether the statement is true or false
Investment is considered to be negatively correlated with current real GDP
a. True b. False Indicate whether the statement is true or false
Which of the following is a normative economic statement?
a. Congress should increase the legal minimum wage. b. An increase in the legal minimum wage would cause unemployment to increase. c. An increase in the legal minimum wage would cause unemployment to decrease. d. An increase in the legal minimum wage would lead to more equality in the distribution of income.