The price of a good will fall when:
A. there is a shortage of the good.
B. there is a surplus of the good.
C. demand for the good increases.
D. the supply of the good decreases.
Answer: B
You might also like to view...
Refer to the scenario above. The average total cost of Firm A when it produces 100 pens is $3, and the average total cost of Firm B when it produces 50 pens is $7. At these levels of production, which of the following statements is true?
A) Both firms incur losses. B) Firm A incurs a loss but Firm B makes a profit. C) Firm B incurs a loss but Firm A makes a profit. D) Both firms make profits.
If the reserve requirement is 12 percent and banks desire to hold no excess reserves, when a bank receives a new deposit of $1,000,
a. it must increase its required reserves by more than $150. b. its total reserves initially increase by $120. c. it will be able to make new loans up to a maximum of $880. d. None of the above is correct.