If the current market price of good Z is below the equilibrium price of good Z
A) it must be because the government has imposed a price ceiling in the market for good Z.
B) there is a shortage of good Z.
C) there is a surplus of good Z.
D) demand must necessarily decrease to restore equilibrium.
E) a and b
B
Economics
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Governments often intervene in agricultural markets by
A) granting subsidies. B) setting production quotas that will increase production. C) setting price floors that reduce prices for buyers. D) imposing heavy taxes on farm products.
Economics
The consumption function shows the relationship between
A. real disposable income and planned real consumption. B. interest rates and planned real consumption. C. employment and planned real consumption. D. the price level and planned real consumption.
Economics