A price above the equilibrium price will:
A) result in quantity supplied being less than quantity demanded.
B) result in a shortage.
C) create pressure for price to fall.
D) tend to rise over time.
Answer: C) create pressure for price to fall.
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A natural monopoly is defined as
A) a market in which competition and entry are restricted by the granting of a government license. B) an industry in which economies of scale allow one firm to supply the entire market at the lowest possible cost. C) a market in which competition and entry are restricted by the granting of a patent. D) any market where one firm constitutes the entire industry.
The aggregate supply curve shows the relationship between ____ and ____, holding all other factors constant
a. price level; quantity of real GDP supplied b. price level; supply of nominal GDP c. nominal GDP; price level of real GDP d. price level; amount of nominal GDP supplied