When the price of tomatoes is $4, farmers supply 100,000 bushels. When price is $6, farmers supply 100,000 bushels. From this, we conclude that the
a. equilibrium price of tomatoes is $5
b. market-day supply curve is vertical at a quantity of 100,000
c. farmers are producing too many tomatoes
d. supply curve for tomatoes is upward sloping
e. market demand for tomatoes must be 100,000
B
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A positive externality will cause a market to produce: a. more than the efficient equilibrium output level. b. iless than the efficient equilibrium output level. c. the efficient equilibrium output level
d. None of the above.
A fixed exchange rate can be maintained by a government as long as it has sufficient
A. supplies of its own currency. B. foreign reserves. C. gold and other precious metals. D. tax revenues.
A decrease in demand will decrease prices most when supply is
A. inelastic (but not perfectly inelastic). B. perfectly inelastic. C. elastic. D. unit elastic.
According to ________, the level of employment is determined by the level of aggregate demand for goods and services.
A. Keynes B. the Classicals C. supply-side economists D. Marx