If the quantity supplied in a market exceeds the quantity demanded in a market, we would expect price to:
A) stay the same.
B) increase.
C) decrease.
D) rise in order to clear the market.
Answer: C) decrease.
Economics
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The economy's normal, long-run growth rate is shown in the AD-AS model as:
A. the upward-sloping SRAS curve. B. the vertical LRAS curve. C. the vertical SRAS curve. D. the horizontal LRAS curve.
Economics
The figure above shows Clara's demand for CDs. The price for a CD is $15. Which statement is TRUE?
A) When Clara buys 6 CDs, she receives $15 of consumer surplus on her 6th CD. B) When Clara buys 6 CDs, she receives a total of $15 of consumer surplus. C) When Clara buys 6 CDs, she receives a total of $30 of consumer surplus. D) When Clara buys 6 CDs, she receives a total of $45 of consumer surplus.
Economics