Suppose a shortage for good A exists. Given this information, we know that
A) the price of good A will tend to rise toward the equilibrium level.
B) the price of good A will tend to fall toward the equilibrium level.
C) a government price floor should be imposed above the current price so that the market can work more effectively.
D) a government price ceiling should be imposed above the current price so that the market can work more effectively.
Answer: A
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The above table gives the demand and supply schedules for Blu-ray discs. If the price of a Blu-ray disc is $8, there is a ________ and the price of a compact disc will ________
A) shortage; rise B) shortage; fall C) surplus; rise D) surplus; fall
The above table gives the demand schedule for Billy Bob's BBQ ribs. The price elasticity of demand for Billy Bob's ribs over the price range of $3 to $1 is equal to
A) 4.00. B) 2.00. C) 0.50. D) 0.25.
Bonds that are sold in a foreign country and are denominated in the country's currency in which they are sold are known as
A) foreign bonds. B) Eurobonds. C) equity bonds. D) country bonds.
If the price of coffee is $1 per pound, how much would it have to change to reach its equilibrium price?
a. increase $1
b. increase $2
c. increase $3
d. increase $4