Suppose that when the price of oranges is $3 per pound, the quantity demanded is 4.7 tons per day and the quantity supplied is 3.9 tons. In this case:
A. excess supply will lead the price of oranges to fall.
B. excess demand will lead the price of oranges to fall.
C. excess demand will lead the price of oranges to rise.
D. excess supply will lead the price of oranges to rise.
Answer: C
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Starting from long-run equilibrium, a large decrease in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; lower; potential B. expansionary; higher; potential C. recessionary; lower; potential D. recessionary; lower; lower
The payoff matrix is a fundamental tool of
a. monopolistic competition. b. game theory. c. corporate finance theory. d. regulatory oversight.
Suppose that some country had an adult population of about 50 million, a labor-force participation rate of 60 percent, and an unemployment rate of 5 percent. How many people were unemployed?
a. 1.425 million b. 1.5 million c. 2.5 million d. 5 million
An internationally discriminating monopolist is one that:
a. can charge different prices to each customer in its domestic market. b. can charge different prices in its domestic and foreign markets. c. faces a downward-sloping demand curve in its domestic market and a perfectly elastic demand curve in its foreign market. d. faces a perfectly elastic demand curve in its domestic market and a downward sloping demand curve in its foreign market.