Excess demand generally causes prices to fall.
Answer the following statement true (T) or false (F)
False
Excess demand generally means that buyers want to buy more than sellers are prepared to supply in a given market, creating pressure on prices to rise.
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________ taxes are paid by a buyer as a percentage of the market price of an item
A) Sales B) Wealth C) Payroll D) Property
If the price of used automobiles increased dramatically relative to all other prices, and the demand for all goods remained the same, which of the following would most likely occur?
a. The GDP price index would decrease less than the CPI. b. Both the GDP price index and the CPI would decrease. c. The GDP price index would increase more than the CPI. d. The CPI would increase more than the GDP price index. e. Both the GDP price index and the CPI would increase by the same amount.