If a competitive market is at equilibrium, and if there is a sudden increase in demand, then a temporary

a. surplus will occur and the price will increase.
b. shortage will occur and the price will fall.
c. surplus will occur and the price will fall.
d. shortage will occur and the price will increase.

Ans: d. shortage will occur and the price will increase.

Economics

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If losses are unavoidable in an uncertain world, then

A) profits are too. B) profits are only the result of good luck. C) profits are avoidable. D) profits are the result of people acting with perfect information.

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All other things unchanged, higher saving rates contribute to higher rates of capital formation.

a. true b. false

Economics