A shortage will occur if:
A. the quantity being supplied at a given price is less than the quantity demanded at that price.
B. the quantity being supplied at a given price exceeds the quantity demanded at that price.
C. there are not enough buyers in the market.
D. there are only inexperienced firms in the market.
A. the quantity being supplied at a given price is less than the quantity demanded at that price.
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To illustrate the classical argument that "supply creates its own demand," the aggregate supply curve should be drawn:
a. downward-sloping. b. upward-sloping. c. horizontal. d. vertical.
When a good is rival in consumption:
A. it is possible for sellers to prevent its use by those who have not paid for it. B. one person's consumption prevents or decreases others' ability to consume it. C. consumers have a perception of scarcity of that good. D. the government has specific import policies limiting its supply.
Refer to the information provided in Figure 6.5 below to answer the question(s) that follow.
Figure 6.5Refer to Figure 6.5. Molly's budget constraint is BD. If the price of CDs decreases, her new budget constraint becomes
A. EF. B. AO. C. AD. D. CD.
Other things equal, a tariff is:
A. superior to an import quota for Americans because a tariff increases the profits of foreign producers. B. inferior to an import quota for Americans because a tariff increases the profits of domestic producers. C. superior to an import quota for Americans because a tariff generates revenue for the U.S. Treasury.