The table shows the demand and supply schedules for jeans
A) At $60 a pair, there is a shortage of jeans and the price will fall.
B) At $60 a pair, there is a surplus of jeans and the price will rise.
C) At $40 a pair, there is a shortage of jeans and the price will rise.
D) At $40 a pair, there is a shortage of jeans and the price will fall.
C
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How does the imposition of an excise tax on a good affect its market equilibrium?
A) Equilibrium quantity decreases, and equilibrium price decreases. B) Equilibrium quantity decreases, and equilibrium price increases. C) Equilibrium quantity increases, and equilibrium price decreases. D) Equilibrium quantity increases, and equilibrium price increases
Assume Japan must forego producing 60 computers for each automobile it produces. Moreover, the United States can produce one automobile if it forgoes producing 80 computers. Which of the following is true?
a. The United States has a lower opportunity cost of producing automobiles. b. The United States has a comparative advantage in producing automobiles. c. Japan has a comparative advantage in producing computers. d. No trade will occur between Japan and the United States. e. Japan has a lower opportunity cost of producing automobiles.