Suppose the demand for peaches sold from one roadside stand in Georgia is perfectly elastic. As a result, a 7 percent increase in the price charged by the owner of this stand leads to
A) zero peaches sold by this stand.
B) no change in the quantity demanded at this stand.
C) a 7 percent decrease in the quantity demanded at this stand.
D) a 7 percent decrease in demand at this stand.
E) a virtually infinite increase in the quantity demanded at this stand.
A
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An economic populist movement
A) is likely to create long-term economic stability. B) favors promotion of export-based industries and fiscal austerity. C) is less likely to use expansionary policy due to inflation risks. D) uses economic tools to obtain support from labor and domestically oriented businesses.
At an equilibrium price: a. quantity demanded exceeds quantity supplied. b. quantity demanded equals quantity supplied
c. quantity demanded is less than quantity supplied. d. there is no scarcity.