Assume the income of consumers of good X (a normal good) increases. What occurs at the initial equilibrium price for X that signals market participants that the equilibrium price must change?
A) A surplus is created by an increase in supply.
B) A surplus is created by a decrease in demand.
C) A shortage is created by an increase in demand.
D) A shortage is created by a decrease in supply.
C
Economics
You might also like to view...
A craft union attempts to increase wage rates by:
A. equating the MRP and the MRC curves. B. shifting the labor supply curve to the left. C. shifting the labor supply curve to the right. D. shifting the MRP curve to the right.
Economics
Utility refers to
A) the usefulness of a good or service. B) the value of a good or service. C) the want-satisfying power of a good or service. D) the degree to which a good or service is needed.
Economics