If the current price of a good is the same as that found at the intersection of the market demand and supply curves, then:
A. the market is in equilibrium.
B. excess supply exists.
C. price will rise.
D. price will fall.
Answer: A
You might also like to view...
The figure above shows a perfectly competitive firm. When the firm maximizes its profit, its total cost is
A) $1,200. B) less than $1,200 but more than zero. C) more than $1,200. D) zero.
Which one of the following statements is true?
A. Money flows from households to firms for resources. B. Money flows from households to foreign economies for exports. C. Money flows from government to firms for resources. D. Money flows from firms to households for resources.
Individual demand curves are summed horizontally to obtain the market demand curve
a. True b. False Indicate whether the statement is true or false
Economic stagnation coupled with high inflation is commonly called:
A. stagflation. B. inflationary stagnation. C. stagnatory growth. D. inflagnation.