In a free market, if the price of a good is below the equilibrium price, then;
A. sellers, dissatisfied with growing inventories, will lower their prices.
B. sellers, dissatisfied with growing inventories, will raise their prices.
C. the government will set a higher price to reestablish the market equilibrium.
D. buyers, hoping to ensure they acquire the good, will bid the price higher.
Answer: D
You might also like to view...
The introduction of a new technology that increases the productivity of labor will:
A. increase the supply of labor. B. increase the demand for labor. C. decrease the demand for labor D. decrease the supply of labor.
Refer to Figure 10-2. Which of the following statements is true?
A) Points a and b may not necessarily be the utility-maximizing quantities of ice cream cones at two different prices because we have no information on the consumer's budget or the price of other goods. B) Points a and b are derived independently of the utility-maximizing model. C) Points a and b are the utility-maximizing quantities of ice cream cones at two different prices of ice cream. D) Point a could be a utility-maximizing choice if the price is $3 but point b may not be because we have no information on the marginal utility per dollar when price changes.
In Dakistan, 3M people work, 0.5M are unemployed and get UI benefits, 0.1M are unemployed without UI benefits and 3M have no intention to work. The unemployment rate is (to the nearest %)
A) 7%. B) 9%. C) 14%. D) 17%.
New smartphone applications are developed to help consumers find the cheapest prices in the neighborhood. Therefore,
A) the local competitive will become more intensive. B) the prices of goods listed in the application will be lowered. C) price discrimination will occur against consumers without a smartphone or this application. D) All of the above.