Suppose roses are currently selling for $30 per dozen, but the equilibrium price of roses is $20 per dozen. We would expect a
a. shortage to exist and the market price of roses to increase.
b. shortage to exist and the market price of roses to decrease.
c. surplus to exist and the market price of roses to increase.
d. surplus to exist and the market price of roses to decrease.
d
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An economic model is a detailed version of an economic environment
Indicate whether the statement is true or false
The recent flexible exchange rate system developed because of: a. the controversies generated by trade surplus nations wanting to devalue their currencies
b. the huge debts owed to the IMF by less-developed countries. c. governments were unable to agree on an alternative to a fixed-rate approach when the Bretton Woods system collapsed. d. the controversies generated by trade deficit nations wanting to raise the value of their currencies.