Assume there is a surplus in the market for hybrid automobiles. Which of the following statements correctly describes this situation?
A) The price of hybrid automobiles will fall in response to the surplus; as the price falls the quantity demanded will increase and the quantity supplied will decrease.
B) Some consumers will be unable to obtain hybrid automobiles at the market price and will have an incentive to offer to buy the product at a higher price.
C) The supply of hybrid automobiles is greater than the demand for hybrid automobiles.
D) The surplus will cause an increase in the equilibrium price of hybrid automobiles.
A
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A pegged rate system that includes policy cooperation is usually:
A) difficult to maintain. B) a good compromise for nations who want exchange rate stability, stable output, and some flexibility. C) not a good bet for nations who are large trading partners. D) administered by large private banks.
The government of Eduland provided generous unemployment benefits to all the unemployed workers. However, the new government that came into power reduced the amount of unemployment insurance paid to each worker
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