When a shortage occurs in the market for a good, quantity
a. demanded exceeds quantity supplied and the market mechanism pushes the price up, which in turn encourages more production and less consumption.
b. supplied exceeds quantity demanded and the price falls, which encourages more production and less consumption.
c. demanded exceeds quantity supplied and the market mechanism pushes the price down, which encourages more production and less consumption.
d. supplied exceeds quantity demanded and the price rises, which encourages more production and less consumption.
a
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The purpose of a crop limitation program is to
a. increase the demand for farm goods b. decrease the demand for farm goods c. increase the supply of farm goods d. decrease the supply of farm goods e. reduce the excess demand resulting from a price ceiling program
Most economic models
a. incorporate the assumption of rational behavior on the part of economic actors. b. incorporate the notion that people are usually reluctant to change their minds. c. are meant to precisely duplicate reality. d. assume that people often make sub-optimal choices.
Which of the following is true?
A. Twenty-five percent of Americans were officially unemployed in 1933. B. The United States' economy expanded steadily from 1933 to 1937. C. Once the Great Depression began in 1929, the United States' economy moved steadily downhill until 1933. D. All of the choices are true.
Refer to Table 4-4. If a minimum wage of $9.50 is mandated there will be a
A) shortage of 20,000 units of labor.
B) surplus of 10,000 units of labor.
C) shortage of 10,000 units of labor.
D) surplus of 20,000 units of labor.