Refer to Figure 3-5. In a free market such as that depicted above, a shortage is eliminated by

A) a price decrease, decreasing the supply and increasing the demand.
B) a price increase, increasing the quantity supplied and decreasing the quantity demanded.
C) a price increase, increasing the supply and decreasing the demand.
D) a price decrease, decreasing the quantity supplied and increasing the quantity demanded.

B

Economics

You might also like to view...

The above table gives data for the nation of Sueland. What is the value of net exports?

A) $43 billion B) $234 billion C) -$43 billion D) $511 billion

Economics

Contrast demand-pull inflation with cost-push inflation.

What will be an ideal response?

Economics