Suppose the market-clearing price of guitars is $500, but the prevailing price is currently $700. Pick the correct statement
A) There is a shortage of guitars.
B) Guitar sellers would not be able to successfully sell all they planned to sell.
C) Guitar buyers would not be able to successfully buy all they planned to buy.
D) All of the above are true.
E) None of the above is true.
B
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Recall the Application. The decrease in the price of wool would be reflected by a movement ________ on the market supply curve for wool
A) down and to the left B) up and to the right C) up and to the left D) down and to the right
What do the European Union (EU) and the World Trade Organization (WTO) have in common?
(A) The EU and the WTO both enforce the General Agreement on Tariffs and Trade (GATT). (B) The EU and WTO are both organizations that represent member nations in international policy. (C) The EU and the WTO both began in the 1950s. (D) The EU and the WTO both have a parliament.