Which of the following would indicate that price is temporarily above its market equilibrium?
A) There are a number of producers who are left with unwanted inventories.
B) There are a number of customers who are looking for a good but cannot find sellers.
C) New firms decide to enter the market.
D) The government must step in and impose a tax on the good.
A
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How do changes in income tax policies affect aggregate demand?
A) Higher taxes increase disposable income, consumption, and aggregate demand. B) Higher taxes reduce disposable income, consumption, and aggregate demand. C) Higher taxes increase corporate investment and aggregate demand. D) Higher taxes increase aggregate supply and thus increase aggregate demand as well.
Demand for Snickers bars will decrease if:
A. the price of Snickers bars decreases. B. a news story claiming 95% of all geniuses eat at least one Snickers bar a day is released. C. the price of Milky Way bars (a substitute) decreases. D. the price of Milky Way bars (a substitute) increases.