If the price of a product is below the equilibrium price, the result will be A. A shortage of the good. B. A surplus of the good. C. A decrease in the supply of the good. D. An increase in the demand of the good.

If the price of a product is below the equilibrium price, the result will be A. A shortage of the good. B. A surplus of the good. C. A decrease in the supply of the good. D. An increase in the demand of the good.

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter3: Supply And Demand: Theory

Section: Chapter Questions

Problem 9QP

See similar textbooks

Related questions

Q: The graph illustrates the market for Internet service Draw a point to indicate the market price of a…

A: Gathering taxes is a crucial way for nations to create public revenues that make it conceivable to…

Q: K The graph shows the market for walnuts. The government introduces a production quota of 4 billion…

Q: T5

A: Oligopoly is a market with limited competition and is shared by only a few sellers or producers.…

Q: The graph shows the market for lattes in which the government has imposed a tax of $6 per latte.…

A: Taxes are unintended fees placed on individuals or companies and levied by a government agency –…

Q: If the multiplier is 5 and investment increases by $3 billion, equilibrium real GDP will increase…

A: We are given, Multiplier = 5 Increase in investment = $3 billion To find, increase in equilibrium…

Q: true or false quickly

A: The term “labor force participation rate” shows the percentage of all individuals of working age are…

Q: The table below shows the number, in thousands, of vehicles parked in the central business district…

A: We have given the data of the vehicles parked in the central business district of the city on a…

Q: What are the functions of central bank in developed economies?

A: Developed countries are the one that is able to have sustained developement and produce output…

Q: Identify whether each of the following examples belongs in M1 or M2. If an example belongs in both,…

A: The commodity that is accepted as a medium of exchange in the market is known as money. It is used…

Q: Refer to the demand schedule below: Price ($) Quantity demanded 80 70 60 50 40 30 20 10 0 0 50 100…

A: In economics, demand is the quantity of a good that consumers are willing and able to purchase at…

Q: This table shows the U.S. federal income tax rates from 2015. (Source: Internal Revenue Service)…

A: Introduction We have given a data of U.S federal income tax rates from 2015. Each row shows the tax…

Q: You are the manager of a monopoly that sells a product to two groups of consumers in different parts…

A: Market Demand: Market demand is the horizontal sum of the individual demand bend. It represents the…

Q: When the marginal product of labor is increasing marginal cost is decreasing OO O O constant…

A: A change in the output caused by using one additional unit of a specific input is known as a…

Q: Transaction costs of reaching a “collusive agreement” are low if

A: A collusive agreement is defined as a non-competitive, hidden, and unethical agreement between two…

Q: The El Dorado Star is the only newspaper in El Dorado, New Mexico. Certainly, the Star competes with…

A: Monopoly achieves equilibrium where marginal revenue and marginal cost are equal. at equilibrium…

Q: If the MPC is 0.95, then a $10 million increase in disposable income will Increase consumption by…

A: Marginal propensity to consume (MPC) measures the change in consumption due to a change in…

Q: What is the difference between economic profit and accounting profit?

A: "Since you have asked multiple questions, we will solve first question for you .. If you want any…

Q: If the marginal value of some variables is above the average value of the variable:* the marginal…

Q: The El Dorado Star is the only newspaper in El Dorado, New Mexico. Certainly, the Star competes with…

A: Total cost is the sum of fixed cost and variable cost Fixed cost is equal to the total cost at zero…

Q: The graph shows the marginal private benefit from a dentistry degree and the marginal cost of…

A: externality is defined as the consumption or production done by any party, which effects the third…

Q: State and explain three reasons why there are restrictions of import of goods and services

A: Various obstacles that prevent the free movement of goods and services between nations are referred…

Q: The El Dorado Star is the only newspaper in El Dorado, New Mexico. Certainly, the Star competes with…

A: Since you have posted multiple questions, we will answer the first question for you. If you want any…

Q: The graph shows the market for posters in which the government has imposed a tax of $2 per poster.…

A: The following graph shows the demand curve, supply curve and the shift of the supply curve…

Q: 2.a) Using the following parameters calculate equilibrium Y in a private closed, private open and…

A: Private closed economy is the economy where import and export is not occurs and in private open…

Q: When applied to a public good, 'non-rival' means that Select one: A. Consumption of the good by one…

A: Public goods are those goods which are usually provided by the government to the people. These goods…

Q: e) True, false, uncertain, or not enough information? The labor force participation rate increases…

Q: A project is estimated to cost P120k, last 8 years & have a salvage value of P20k. The annual gross…

A: Using a concept known as net present value, or NPV, it is possible to determine the overall value of…

Q: Show it.... The State government is considering building a new highway. Linda lives near…

A: Average cost is defined as the total cost per unit of output. When we divide the total cost of…

Q: The government decides to fill gaps in Medicare by making it available to more people. This is…

A: In this case, we have to show the types of fiscal policy. Because fiscal policy contraction and…

Q: (a) Using the data from the above figure, calculate the firm's total profit. Total profit: $ (Click…

A: Here, the given graph shows the marginal cost curve, average total cost curve, marginal revenue…

Q: K Steel production creates pollution. If a tax is imposed on steel production equal to the marginal…

A: At the marketplace, negative externality refers to the situation when a firm generates pollution or…

Q: Which statement is CORRECT? O The Bureau of Labor Statistics measures the size of the US labor force…

A: Unemployment is a state of being unemployed, the number of people or individuals who are available…

Q: Click on the icon to read the news clip, then answer the following questions. The graph shows the…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: 3. Draw a graph representing a hypothetical economy. Carefully label the two axes, the S+T+IM curve,…

A: saving doesn't rely upon income or production (particularly extra cash, public pay, or even total…

Q: For the following questions, consider the figure below. Initially, the economy is at the equilibrium…

A: The equilibrium wage rate is determined where the demand and supply for labor are equal.

Q: a b. C. Determine each of the following (show all your work): explicit costs implicit costs…

A: An explicit cost is a direct payment made to others in the course of running a business, such as…

Q: A company paid $200,000 eight years ago for a specialized machine that has no salvage value and is…

A: Cost, in popular usage, is the financial worth of the goods and services that producers and…

Q: Consider this economy. Calculate exports and also net exports for this economy

Q: Which of the following economic concepts can be defined as the next best alternative given up when…

A: In economics, we deal with resources which are scarce in nature, the ways to utilise them…

Q: Suppose that you have an AEF at a price level of p = $100 given by: AEF = 1,200+ 0.50Y Suppose also…

A: The aggregate demand curve addresses the absolute amount of all labour and products demanded by the…

Q: Liquidity risk is the result of a liability side issue and which of the following? 1.A cash flow…

A: Liquidity risk can be defined as the risk of incurring losses resulting from the inability to meet…

Q: Which of the following policies would likely increase productivity all else the same? A increasing…

A: At the marketplace, productivity refers to the total amount of goods and services produced with the…

Q: Use the following table for questions 7-10 Carving knives Home users Professional Chefs No-name…

A: Here, the given table shows the price of two products for two different types of chefs that the…

Q: 4

A: Based on the ownership of the resources, the economy can be divided into command, market and mixed…

Q: he table shows the demand and supply schedules for alculators.

A: Equilibrium is point where Demand is equal to supply in the market. Equilibrium price = 8 $ where…

Q: SETTINGS Cost Structure Low Cost Quantity 40 Quantity ($) Price, Average/Marginal Cost 225 200 175…

A: Monopoly is the form of market where single seller sale the product at high cost. There is entry…

Q: The table shows the demand and supply schedules for tacos. What is the equilibrium price, and the…

A: Price Qd Qs 0 160 0 1 120 40 2 80 80 3 40 120 4 0 160

Q: The El Dorado Star is the only newspaper in El Dorado, New Mexico. Certainly, the Star competes with…

A: The El Dorado Star faces the revenue and cost schedules shown in the table: Q TR TC 0 0 2500…

Q: How

A: A market is a place where purchasers and vendors can meet to facilitate the exchange or transaction…

Q: The spending multiplier, m, is 1/(1-MPC). a) If the MPC is 0.9, what is the spending multiplier? b)…

A: Marginal Propensity to Consume is the proportion of an increase in income that gets spent on…

Question

If the price of a product is below the equilibrium price, the result will be
A. A shortage of the good.
B. A surplus of the good.
C. A decrease in the supply of the good.
D. An increase in the demand of the good.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

a) an increase in supply. b) a decrease in quantity supplied. c) a decrease in supply. d) an increase in quantity supplied.
Good X and good Y are substitutes. If the price of good Y increases, then the a. Demand for good X will decrease. b. Demand for good X will increase. c. Quantity demanded of good Y will increase. d. Market price of good X will decrease.
help me tutors (choose answer correctly) not neccessarily to explan. 1. Evaluate the movement from point A to point B on the graph shows. a. decrease in demand. b. decrease in quantity demanded.c. an increase in quantity demanded.d. an increase in demand. 2. According to the graph, what are equilibrium price and quantity. a. $7, 20 b. $5, 40c. $7, 60 d. $3, 60
Assume that good Z is an inferior good for a consumer. If the consumer's income increases, thenA. the supply of good Z will increase.B. the supply of good Z will decrease.C. the demand of good Z will increase.D. the demand of good Z will decrease.
Increase in supply usually __ the price and __ the quantity demanded.(A) lowers, lowers(B) raises, raises(C) lowers, raises(D) raises, lowers
Indicate the effect (increase, decrease or indeterminate) on the equilibrium price and quantity of each of these changes in demand and/or supply. A. Increase in demand, increase in supply 1. 2. B. Increase in demand, decrease in supply 3. 4. C. Decrease in demand, decrease in supply 5. 6.
Indicate the effect (increase, decrease or indeterminate) on the equilibrium price and quantity of each of these changes in demand and/or supply. A. Decrease in demand, increase in supply 1. 2. B. Increase in demand, supply is constant 3. 4. C. Increase in supply, demand is constant 5. 6.
Indicate the effect (increase, decrease or indeterminate) on the equilibrium price and quantity of each of these changes in demand and/or supply. A. Decrease in demand, supply is constant 1. 2. B. Decrease in supply, demand is constant 3. 4.
Give one reason for decrease in supply of a good
Product T and Product Y are substitutes. If the price Y decreased a. Price of T increases b. Demand of T increases c. Demand of Y decreases d. Price of T decreases When the maker lemon D increased its price from P150.00 to P170.00 per bottle, the result is a. A decrease quantity demanded for lemon D b. A decrease in quantity supplied for lemon D c. An increase in quantity demanded for lemon D d. A constant quantity demanded for lemon D
Following an increase in supply and an increase in demand, the market is producing more at a lower price. What must have happened? Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer. a The change in demand was larger than the change in supply. b The change in demand was smaller than the change in supply. c There is no reason to think that either change was larger than the other. d Some other change must have occurred.
The price of chicken wings decreased. Which of the following is likely to happen: A. The supply of chicken wings will increase B. The supply of chicken wings will decrease C. Quantity supplied of chicken wings will decrease D. Quantity supplied of chicken wings will increase