When a surplus exists in a market, sellers
a. raise price, which increases quantity demanded and decreases quantity supplied, until the surplus is eliminated.
b. raise price, which decreases quantity demanded and increases quantity supplied, until the surplus is eliminated.
c. lower price, which increases quantity demanded and decreases quantity supplied, until the surplus is eliminated.
d. lower price, which decreases quantity demanded and increases quantity supplied, until the surplus is eliminated.
c
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The demand curve for labor slopes downward because
a. few workers work at low wages. b. capital has been substituted for labor in most industries. c. of the diminishing marginal product of labor. d. All of the above are true.
If the market mechanism is efficient, the marginal cost accurately measures the opportunity cost of a good or service
a. True b. False Indicate whether the statement is true or false