The equilibrium or market clearing price occurs at the point at which
A. the supply curve intersects the horizontal axis.
B. there is a shortage of the desired good.
C. quantity demanded equals quantity supplied.
D. the demand curve intersects the vertical axis.
Answer: C
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Using the above table, at a price of $5 there will be a
A) shortage of 20 units. B) shortage of 10 units. C) surplus of 20 units. D) surplus of 10 units.
The overall price level and real GDP both decline as one moves downward along the demand for money curve
Indicate whether the statement is true or false
PPP is the acronym for:
A. producer purchasing power. B. producer power parity. C. purchasing power parity. D. purchasing price power.
In the above figure, the relationship between income and expenditures is
A) positive. B) negative. C) independent. D) random.