If the market price of a good is above the equilibrium price ______
A: a surplus will exist, which will put downward pressure on the prices.
B: the supply curve will shift to the right as firms rush to take advantage of the high price.
C: the demand curve will shift to the left as consumers decrease the quantity they buy.
D: the government will intervene to force the price downward.
E: a shortage will exist, which will force the price even higher.
A: a surplus will exist, which will put downward pressure on the prices.
B: the supply curve will shift to the right as firms rush to take advantage of the high price.
C: the demand curve will shift to the left as consumers decrease the quantity they buy.
D: the government will intervene to force the price downward.
E: a shortage will exist, which will force the price even higher.
举一反三
- An increase in market supply and an increase in market demand will result in A: A decrease in equilibrium price and an increase in equilibrium quantity B: A decrease in equilibrium price - the change in equilibrium quantity is indeterminate C: An increase in equilibrium quantity and the change in price is unclear D: all of above
- Suppose roses are currently selling for $40 per dozen, but the equilibrium price of roses is $30 per dozen. We would expect a_______. A: shortage to exist and the market price of roses to increase. B: shortage to exist and the market price of roses to decrease. C: surplus to exist and the market price of roses to increase. D: surplus to exist and the market price of roses to decrease.
- If the market price of a good is below the equilibrium price ______ A: quantity demanded Hill exceed quantity supplied, resulting in a shortage. B: quantity demanded Hill exceed quantity supplied, resulting in a surplus. C: quantity supplied will exceed quantity demanded, resulting in a shortage. D: quantity supplied will exceed quantity demanded, resulting in a surplus. E: the supply curve will shift to the left and the demand curve will shift to the right.
- Consider a market with a downward sloping demand curve and an upward sloping supply curve. A $50 tax levied on the producer of the good will cause the market price to:
- According to the Law of Demand, the demand curve for a good will A: shift leftward when the price of the good increases. B: slope downward. C: shift rightward when the price of the good increases. D: slope upward.