Refer to Figure 3-5. At a price of $5,
A) there is a scarcity of 4 units. B) there is a surplus of 4 units.
C) there is a shortage of 4 units. D) there is a shortage of 6 units.
C
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Refer to Figure 1A.1. Assume that the graph in this figure represents the demand and supply curves for used cars, which are inferior goods. An increase in income would be represented by a shift from
A) Demand 1 to Demand 2. B) Demand 2 to Demand 1. C) Supply 1 to Supply 2. D) Supply 2 to Supply 1.
Refer to the graph shown. A shift in the supply of dollars from S1 to S2 is most likely the result of:
A. a decrease in the U.S. price level relative to foreign prices. B. an increase in U.S. incomes relative to foreign incomes. C. the U.S. government's attempt to support its own currency. D. an increase in U.S. interest rates relative to foreign interest rates.