Suppose the market supply curve is upward sloping and market demand is perfectly inelastic. If the market price is held above the equilibrium level, which of the following statements about the resulting outcome is not true?
A) The decrease in consumer surplus is fully captured by the producers.
B) There will be an excess quantity supplied.
C) Quantity demanded will remain the same.
D) Quantity demanded will decline.
D
Economics
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When economists say the supply of a product has increased, they mean the
a. supply curve has shifted to the right. b. price of the product has risen, and consequently, suppliers are producing more of it. c. supply curve has shifted to the left. d. amount of the product that consumers are willing to purchase at various prices has increased.
Economics
People who believe in the ability-to-pay principle would most likely favor ______.
a. regressive taxes b. progressive taxes c. flat taxes d. excise taxes
Economics