If the desired amount demanded is greater than the desired amount supplied, then:
a. Business inventories could be rising or falling, depending on how they are valued.
b. Business inventories are falling.
c. Increases in residential construction are usually the reason, because they are measured at the end of each period.
d. It is impossible for demand to be greater than supply, because supply limits demand.
e. None are correct.
.B
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One requirement for an industry to be perfectly competitive is that in the industry there
A) are a few firms who control the market. B) are many firms for whom the efficient scale of production is small. C) is one firm that sells a product with no close substitutes. D) are many firms selling different products. E) is a barrier to entry that makes the entry of new firms difficult.
A decrease in the price of VCRs will increase demand for video cassettes
a. True b. False Indicate whether the statement is true or false