If a good is scarce
A) some criteria must be established to determine who gets what.
B) its price is above the market-clearing level.
C) its price is below the market-clearing level.
D) the quantity demanded is greater than the quantity supplied.
E) the supply is less than the demand.
A
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If not all prices adjust instantly to changing economic circumstances, an unexpected fall in the price level leaves some firms with higher-than-desired prices, and these higher-than-desired prices depress sales and induce firms to ________ the quantity of goods and services they produce.
a) increase substantially b) increase slightly c) reduce d) make no changes to
Usually the imposition of trade barriers affecting a particular good benefits ________ people domestically, each of whom gains a ________
A) a few; little B) a few; lot C) many; little D) many; lot