Suppose that the quantity demanded for cars exceeds the quantity supplied of cars. We would expect that
A. the demand will decrease (demand will shift to the left to meet the supply.
B. the price of cars will increase.
C. the supply will increase (supply will shift to the right to meet the demand.
D. the price of cars will decrease.
Ans: B. the price of cars will increase.
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GDP is
A) a perfect measure of the value of production. B) an imperfect measure of the standard of living. C) the only factor that affects our standard of living. D) a perfect measure of the standard of living. E) a measure which includes the value of all newly produced goods and services.
Jim recently graduated from college. His income increased dramatically;from$5000 a year to $60,000 a year. Jim decides that instead of using the bus, he would buy a car. This implies that
a. The car is a normal goods for Jim b. The car is an inferior goods for Jim c. The bus and the car are complementary for Jim d. Need information on the price of cars