If the price in the market for a commodity is above the market equilibrium price, the:
A) price will remain unchanged.
B) price will rise to clear the market.
C) quantity supplied exceeds the quantity demanded.
D) quantity demanded exceeds the quantity supplied
Ans: C) quantity supplied exceeds the quantity demanded.
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A price below the equilibrium price will:
A) result in pressure for price to rise. B) result in a surplus. C) never be the case. D) result in pressure for price to fall.
Under a system of flexible exchange rates, which of the following would be most likely to cause a nation's currency to appreciate on the foreign exchange market?
a. stable domestic prices while the nation's trading partners are experiencing inflation b. a decrease in domestic interest rates c. an increase in foreign interest rates d. a domestic inflation rate of 10 percent while the nation's trading partners are experiencing stable prices