Suppose the current price of a pound of steak is $12 per pound and the equilibrium price is $9 per pound. In this case, there is a
A) surplus, so the price falls and quantity supplied increases.
B) surplus, so the price rises and quantity demanded increases.
C) shortage, so the price rises and quantity demanded decreases.
D) shortage, so the price falls and quantity demanded increases.
E) surplus, so the price falls and quantity demanded increases.
E
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What does it mean if a person makes a "decision at the margin"?
A) The person compares additional benefits and additional costs when deciding what to do. B) The person weighs the good against the bad and then decides what to do. C) The person is more likely to say yes than to say no. D) The person compares marginal benefits and total costs and then decides what to do. E) The person makes a decision based on a condition.
The World Trade Organization is a successor organization to the
A) United Nations. B) World Bank. C) International Court of Justice. D) GATT.