When quantity demanded of a good is less than the quantity supplied at the prevailing market price,
a. the market is in equilibrium
b. the price of the good tends to rise
c. the price of the good tends to fall
d. the demand curve shifts rightward until the surplus is eliminated
e. the supply curve shifts leftward until the shortage is eliminated
C
You might also like to view...
According to economists, national defense can be supported through taxation because
A) national security generates no benefits for which any one would be willing to pay. B) people are insufficiently patriotic. C) taxation makes everyone pay in proportion to the benefits they receive. D) the people who refuse to pay the cost cannot easily be excluded from the benefits. E) we must choose between coercion through taxation and coercion through a draft.
The monopolist's marginal revenue curve
A) doesn't exist. B) lies below the demand curve. C) is identical to the demand curve. D) lies above the demand curve.