When a shortage occurs in the market for a good, quantity
a. demanded exceeds quantity supplied and the market mechanism pushes the price up, which in turn encourages more production and less consumption.
b. supplied exceeds quantity demanded and the price falls, which encourages more production and less consumption.
c. demanded exceeds quantity supplied and the market mechanism pushes the price down, which encourages more production and less consumption.
d. supplied exceeds quantity demanded and the price rises, which encourages more production and less consumption.
a
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What are reserves? Discuss the various types of reserves used in the U.S. banking system
What will be an ideal response?
Which of the following best describes the relationship between the efficiency wage and the equilibrium wage?
a. The efficiency wage is higher. b. The equilibrium wage is higher. c. They are equal. d. The efficiency wage may be either higher or lower.