Suppose the current price of a pound of steak is $6 per pound and the equilibrium price is $9 per pound. What takes place?
A) There is a shortage, so the price rises and quantity demanded increases.
B) There is a shortage, so the price falls and quantity demanded increases.
C) There is a surplus, so the price falls and quantity demanded increases.
D) There is a shortage, so the price falls and quantity demanded decreases.
E) There is a shortage, so the price rises and quantity demanded decreases.
E
You might also like to view...
The table above gives the production possibilities frontier for a nation that produces wheat and soybeans
Use the information in that table to complete the table below, which has in it the opportunity costs of moving from one production point to another. Do not forget to note the units of the opportunity costs. Movement from Opportunity cost Movement from Opportunity cost A to B D to C B to C C to B C to D B to A
Assuming fixed costs are positive, over a range of output in which average total costs were constant,
a. average variable costs would be constant as output increases. b. average variable costs would be falling as output increases. c. average variable costs would be rising as output increases. d. marginal cost would be less than average variable cost.