If a price is below equilibrium,
A. A shortage will cause the price to rise and the quantity supplied to increase.
B. A surplus will cause the price to fall and the quantity supplied to increase.
C. A surplus will cause the price to fall and the quantity supplied to decrease.
D. A shortage will cause the price to fall and the quantity supplied to decrease.
Answer: A
Economics
You might also like to view...
What does the Gauss-Markov theorem prove? Without giving mathematical details, explain how the proof proceeds. What is its importance?
What will be an ideal response?
Economics
The straight-line production possibilities curve
A) does not show increasing opportunity costs. B) fails to reflect tradeoffs. C) fails to benefit trading nations. D) refutes the principles of comparative advantage.
Economics