How does a lower price alleviate the problem of excess supply?
A) A lower price increases the number of potential sellers and the number of potential buyers.
B) A lower price increases the number of potential sellers and decreases the number of potential buyers.
C) A lower price decreases the number of potential sellers and the number of potential buyers.
D) A lower price decreases the number of potential sellers and increases the number of potential buyers.
Correct Answer:
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Q25: Most markets,if left alone,will tend toward
A) equilibrium
Q26: A higher price simultaneously _ the quantity
Q27: An increase in supply is shown graphically
Q28: The gap between quantity supplied and quantity
Q29: The price at which the quantity supplied
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Q33: Demand is inelastic if
A) the quantity demanded
Q34: If supply is inelastic,then a demand shift
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