Refer to the diagram, which shows demand and supply conditions in the competitive market for product X. If supply is S 1 and demand D 0 , then
A. at any price above 0G a shortage would occur.
B. 0F represents a price that would result in a surplus of AC.
C. a surplus of GH would occur.
D. 0F represents a price that would result in a shortage of AC.
D. 0F represents a price that would result in a shortage of AC.
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To eliminate a recessionary gap, the government can ________ government expenditures on goods and services or ________ taxes
A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease E) increase; not change
Suppose that today, consumers expect the price of a gallon of gasoline to double in the future. Then today the gasoline
A) demand curve will shift to the right. B) demand curve will shift to the left. C) supply curve will shift to the right. D) supply curve will shift to the left.