If, at the current price, there is a shortage of a good, then
a. sellers are producing more than buyers wish to buy.
b. the market must be in equilibrium

If a principal and agent enter into a fixed-fee contract where the agent is paid a fixed wage

A) the principal bears all the risk. B) the agent bears all the risk. C) the principal and agent share the risk. D) Unable to determine with the information given.

Refer to the above figure. If the government set a price floor of $3.50 per gallon, there would be

A) an excess quantity demanded equal to 100,000 gallons. B) an excess quantity supplied equal to the distance BD. C) an excess quantity supplied equal to the distance BF. D) an excess quantity supplied equal to 100,000 gallons.