In the figure, the equilibrium price is initially $3 per bushel of wheat. If suppliers come to expect that the price of a bushel of wheat will rise in the future, but buyers do not, the current equilibrium price will
A) rise.
B) not change.
C) fall.
D) Perhaps rise, fall, or stay the same, depending on whether there are more demanders or suppliers in the market.
A
Economics
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Which of the following is NOT a reason for the inability to stabilize output?
A) lags between observation and action B) policy actions can immediately take effect C) policy constraints D) preference to maintain long-range goals
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The cross elasticity of demand for substitutes is always positive
Indicate whether the statement is true or false
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