A. income elastic
B. income inelastic
C. Price elastic
D. Price inelastic
Market
If the price was fixed below the equilibrium price there would be ?
A. Excess supply
B. Excess demand
C. Equilibrium
D. Downward pressure on prices
A subsidy paid to producers ?
A. Shifts the supply curve
B. shifts the demand curve
C. Leads to a contractions in supply
D. Leads to an extension of supply
The price mechanism cannot ?
A. Act as a signal
B. Act as a incentive
C. Act as a rationing device
D. shift the demand curve
The price mechanism does not act as a ?
A. Signal
B. Incentive
C. Rationing device
D. Indicator of income
A shift in demand will have more effect on price than quantity if ?
A. The price elasticity of supply is + 3
B. The price elasticity of supply is + 0.2
C. The price elasticity of supply is + 2
D. The price elasticity of supply is infinity
A decrease in demand for a products should ?
A. increase equilibrium price and quantity
B. Decrease equilibrium price and quantity
C. Increase equilibrium price and decrease quantity
D. Decrease equilibrium price and increase quantity
Income inequality can be high in the free market and should be reduced This is an example of What ?
A. Judicial economic statement
B. Positive economic statement
C. Formative economic statement
D. Normative economic statement
A positive externality occurs when ?
A. The social marginal costs are higher than the private marginals costs
B. A product is not provided in the free market
C. The social marginal cost equal the social marginal benefit
D. The social marginal benefits are higher than the private marginal benefits
If the price in a market is fixed by the government above equilibrium ?
A. There is excess equilibrium
B. There is excess supply
C. There is excess demand
D. There is equilibrium