Figure 4.2 illustrates the supply and demand for t-shirts. If the actual price of t-shirts is $15, there is an

A) excess supply of 10 t-shirts. B) excess supply of 8 t-shirts.
C) excess demand of 8 t-shirts. D) excess demand of 10 t-shirts.

B

Economics

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Briefly explain the effects on potential GDP of cutting each of the following taxes: a. Individual income tax b. Corporate income tax c. Taxes on dividends and capital gains

What will be an ideal response?

Economics

A price-taking firm and a monopoly firm are alike in that: a. price equals marginal revenue for both

b. both maximize profits by choosing an output where marginal revenue equals marginal cost. c. price exceeds marginal cost at the profit-maximizing level of output for both. d. in the long run, both earn zero economic profits.

Economics