The market clearing price of a good is
A) the price at which there is at least some of the good available for everyone.
B) the price at which there is no surplus and no shortage.
C) the price that consumers prefer.
D) the price that producers prefer.
Answer: B
Economics
You might also like to view...
The marginal rate of technical substitution is equal to the
A) slope of the total product curve. B) change in output minus the change in labor. C) change in output divided by the change in labor. D) ratio of the marginal products of the inputs.
Economics
According to the Taylor rule, if inflation equals 3 percent and there is a recessionary gap equal to 3 percent of potential output, the Fed will set a real interest rate of ________ percent and a nominal interest rate of ________ percent.
A. 1; 3 B. 3; 3 C. 1; 4 D. 2; 4
Economics