Which of the following best describes the process that occurs when the price of a good is below equilibrium?

B. The excess supply of the good provides an incentive for buyers to offer a higher price. These higher prices encourage sellers to supply more of the good.

C. The excess demand for the good provides an incentive for buyers to offer a lower price. These lower prices encourage sellers to supply less of the good.

D. The excess supply for the good provides an incentive for buyers to offer a lower price. These lower prices encourage sellers to supply less of the good.

A. The excess demand for the good provides an incentive for buyers to offer a higher price. These higher prices encourage sellers to supply more of the good.

Economics

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If the demand curve for economics textbooks shifts to the left, then the value of the marginal product of labor for economics textbook authors will

a. rise. b. fall. c. remain unchanged. d. rise or fall; either is possible.

Economics

Which of the following is not an example of an externality?

A. Carbon dioxide from energy generation that adds to the worldwide long-term greenhouse effect. B. Heat from a factory that makes the neighboring tomato patches more productive. C. Acidic by-products of fossil fuel combustion that produce acid rain. D. A defective part that causes an automobile to break down three months after purchase.

Economics