If the market price is above the equilibrium price: A. A shortage will occur and producers will produce more and lower pricesB. A surplus will occur and producers will produce less and lower pricesC. A surplus will result and consumers will bid prices upD. Producers will make extremely high profits
  • ...
  • Product's price
  • Shift to the left
  • Pepsi to the right
When central planners in a command economy end up having a huge surplus of shoes and widespread shortages of bread in their economy, they have failed to attain: A. Productive efficiencyB. Allocative efficiencyC. Minimum opportunity costsD. Maximum process and revenues
  • Product's price
  • Increase in supply
  • ...
  • Increase in demand
Which of the following is consistent with the law of demand? A. A decrease in the price of tacos causes sellers to want to sell lessB. An increase in the people's craving for pizza causes buyers to buy more pizzaC. An increase in the price of hamburgers causes buyers to buy fewer hamburgersD. A decrease in the price of egg rolls causes a decrease in the quantity of egg rolls demanded
  • ...
  • Generic beer
  • A decrease in the current price of a substitute product
  • A change in the prices of other goods that producers could be producing
The market system automatically corrects a surplus condition in a competitive market by: A. Raising the price of the commodity in question while increasing the quantity demandedB. Raising the price of the commodity in question while decreasing the quantity demandedC. Reducing the price of the commodity in question while increasing the quantity demandedD. Reducing the price of the commodity in question while decreasing the quantity demanded
  • The price of iPads decreases, the quantity demanded will increase
  • Decrease in the price and the quantity sold of DVDs
  • ...
  • Increase in demand
An "increase in the quantity supplied" suggests a: A. Rightward shift of the supply curveB. Movement down along the supply curveC. Movement up along the supply curveD. Leftward shift of the supply curve
  • Increase in demand
  • Increase quantity, but whether it increases price depends on how much each curve shifts
  • Decrease in the demand for digital cameras
  • ...
If farmers withhold some of their current corn harvest from the market because they anticipate a higher price of corn in the near future, then this would cause a(n): A. Rightward shift in the current supply of cornB. Movement up along the current supply curve of cornC. Leftward shift in the current supply of cornD. Movement down along the current supply curve of corn
  • Pepsi to the right
  • Increase in demand
  • ...
  • Product's price
In competitive markets, a surplus or shortage will: A. Never exist because the markets are always at equilibriumB. Cause changes in the quantities demanded and supplied that tend to eliminate the surplus or shortageC. Cause shifts in the demand and supply curves that tend to eliminate the surplus or shortageD. Cause changes in the quantities demanded and supplied that tend to intensify the surplus or shortage
  • ...
  • Shift to the left
  • Pepsi to the right
  • The substitution effect
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