When shortages or surpluses persist for any extended period of time, they
A) are a consequence of failure to allow prices to perform their rationing function.
B) are evidence of an underlying imbalance between demand and supply.
C) are evidence of goods being scarce.
D) indicate that there is no price that will clear the market in the case of some goods.
A
You might also like to view...
If the income elasticity of hamburgers is -0.8 for John, then his share of income spent on hamburgers will ________ when his income increases
A) increase B) decrease C) remain the same D) Not enough information
What is one reason a gift card might be less desirable than cash?
A) A gift card requires an individual to purchase from a particular store, which restricts the choice set. B) Cash requires an individual to purchase from a particular country, which restricts the choice set. C) Cash and the gift card are equally desirable, there is no problem here. D) Gift cards are easier to steal or lose relative to cash.