In a free market, if the price of a good is above the equilibrium price, then;
A. buyers, hoping to ensure they acquire the good, will bid the price lower.
B. sellers, dissatisfied with growing inventories, will lower their prices.
C. the government will set a lower price to reestablish the market equilibrium.
D. sellers, dissatisfied with growing inventories, will raise their prices.
Answer: B
You might also like to view...
If the demand for labor ________, real wages rise and the amount of labor employed ________
A) increases; increases B) increases; decreases C) decreases; increases D) decreases; decreases
A negative balance in the capital and financial account means the economy is
A) lending to the rest of the world. B) running a capital account surplus. C) borrowing from the rest of the world. D) importing more than it is exporting.
The total amount of taxes paid divided by before-tax income is the
A) median taxpayer rate. B) rate of hysteresis. C) average tax rate. D) marginal tax rate.
What ratio defines the standard of living?
A) (Y/N) B) (Y/K) C) (Y/A) D) (Y/Q)