Suppose the market for a good is initially in equilibrium. Which of the following is most likely to happen if supply increases by a smaller amount than the increase in demand?
| a. | ||
| b. | ||
| c. | ||
| d. | ||
| e. |
Answer: B. Both equilibrium price and equilibrium quantity will rise.
Economics
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Compensation paid to employees represented ________ of GDP for the United States in 2014
A) about 5 percent B) approximately 15 percent C) 35 percent D) more than 50 percent
Economics
Assume that a single insurance plan applies to 2,000 low-risk people and 1,000 high-risk people opting for insurance coverage. If the average claim submitted by low-risk people is $100 while that submitted by high-risk people was $1,000 . the insurer would break even by setting a premium of:
a. $250. b. $400. c. $200. d. $500.
Economics