Refer to Figure 3-6. The figure above represents the market for coffee grinders. Compare the conditions in the market when the price is $15 and when the price is $21. Which of the following describes how the market differs at these prices?
A) At each price the demand for coffee grinders exceeds the supply of coffee grinders.
B) At each price there is a shortage; firms will raise the equilibrium price in order to eliminate the shortage.
C) At each price there is a shortage; the shortage is greater at $15 than at $21.
D) The difference between quantity supplied and quantity demanded is greater at $21 than at $15.
C
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At the break-even point for the consumption function
A) saving is positive. B) saving is zero. C) saving is negative. D) the marginal propensity to consume equals l.
Oatmeal is a normal good and cold cereal is a substitute for oatmeal. Raisins are a complement for oatmeal. Which of the following increases the demand for oatmeal?
A) an increase in the price of raisins B) a decrease in income C) a decrease in population D) an increase in the price of cold cereal
Opera Estate Girls' School is considering increasing its tuition to raise revenue. If the school believes that raising tuition will increase revenue it is assuming that the demand for attending the school is
A) perfectly elastic. B) unit elastic. C) inelastic. D) elastic.
"Discouraged workers" are officially considered ________ the labor force and ________
A) in, unemployed B) in, not unemployed C) not in, unemployed D) not in, not unemployed