In a free market, if the price of a good is above the equilibrium price, then;
A. sellers, dissatisfied with growing inventories, will raise their prices.
B. buyers, hoping to ensure they acquire the good, will bid the price lower.
C. sellers, dissatisfied with growing inventories, will lower their prices.
D. the government will set a lower price to reestablish the market equilibrium.
Answer: C
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High budget deficits may:
a. encourage overly expansionary fiscal policy. b. create higher inflation. c. increase the risk of sovereign debt default. d. all of the above.
Check clearing is important to company cash management systems, because:
a. Companies can use it to accelerate payables. b. Companies can use it to decelerate receivables. c. Companies can sweep more funds into interest-earning assets by using efficient check-clearing process. d. All of the above. e. None of the above.