When there is a surplus in a market, prices are likely to fall because:
A.) Buyers do not wish to buy as much as sellers want to sell.
B.) Some buyers will offer to pay a higher price, initiating a move up the supply curve.
C.) Sellers are likely to increase their production.
D.) Buyers will wait for the government to establish a price floor.
D.) Buyers will wait for the government to establish a price floor.
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In the above figure, Brendan originally consumes at point A. If his income rises and both compact discs and haircuts are normal goods then he could begin consuming at point
A) B, C, or D. B) B. C) C. D) D.
According to real business cycle theory, real wages are _____ correlated with employment and the portion of the population that is not in the labor market _____ with higher real wages
a. positively; rises. b. negatively, does not change. c. negatively, rises. d. positively; falls. e. none of the above.