Let MUa and MUb stand for the marginal utilities of apples and bagels. Let Pa and Pb stand for their prices. The general necessary condition for consumer equilibrium is

Which of the following is evidence of a shortage of walnuts?

A) The equilibrium price of walnuts falls due to a decrease in demand. B) The quantity of walnuts demanded is greater than the quantity supplied. C) Firms lower the price of walnuts. D) The price of cashews is lowered in order to make up for the walnut shortage.

The difference between the average earnings of eye surgeons and those of janitors is an example of

a. a temporary differential b. a permanent differential c. a resource price difference that will cause a reallocation of resources to different uses d. a temporary difference that will be eliminated through the reallocation of resources to different uses e. a differential caused by a lack of resource mobility