Suppose the equilibrium price of oranges is $2.00 per pound. If the actual price is above the equilibrium price a
A) shortage exists, and the price falls to restore equilibrium.
B) surplus exists, and the price rises to restore equilibrium.
C) shortage exists, and the price rises to restore equilibrium.
D) surplus exists, and the price falls to restore equilibrium.
E) surplus exists, but nothing happens until either the demand or the supply changes.
D
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"Rational, self-interested people would never end up worse off by any decision they make. Obviously, people often make mistakes or have regrets. Therefore, people do not act rationally or out of self-interest"
Do you agree with these statements? Why or why not?
One of the reasons that import substitution is popular is that
a. there was never any demand for the products in question b. infant industries would have to compete against global rivals c. it benefits suppliers to the favored domestic industries d. it slows down the progression through the production chain e. the emphasis is on comparative advantage and trade expansion