At a price of $1 per table, the quantity supplied of tables is 100 units whereas the quantity demanded is 70 units. Given this information, which of the following statements is true?
A) $1 per table is the market clearing price.
B) At $1 per table, there is a surplus in the market.
C) At $1 per table, there is a shortage in the market.
D) $1 per table is the equilibrium price.
B
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The existence of public goods can be a source of market failure.
Answer the following statement true (T) or false (F)
The budget deficit/surplus projections for 2005 that were made in 2000 were wrong, because there was an
A. anticipated increase in defense spending. B. unanticipated increase in defense spending. C. unanticipated increase in interest rates. D. anticipated increase in immigration.
Refer to Scenario 3.1. If the price of potato chips is $0.50 and the price of Cola is $4.00, and Andy has an income of $14.50, how many units of potato chips will he consume?
A) 5 B) 6 C) 7 D) 8 E) none of the above
Refer to the above figure. A unit tax has been placed on the good. The consumer pays what amount of the tax?
A) none of the tax B) P2 - P0 C) P2 - P1 D) P1 - P0