Multiple Choice
Imagine a free market in equilibrium. After a sudden decrease in supply (but before the price can adjust) , the market experiences a:
A) shortage.
B) surplus.
C) its initial equilibrium.
D) a new equilibrium.
Correct Answer:
Verified
Correct Answer:
Verified
Related Questions
Q103: An increase in demand causes an increase
Q104: In free markets, shortages lead to:<br>A) lower
Q105: Gains from trade are maximized in a
Q106: Suppose the price of oil is falling
Q107: The September 11 terrorist attacks turned many
Q109: Following the release of a new study
Q110: In 1980 when Iraq attacked Iran, the
Q111: If the government institutes a tax on
Q112: If the equilibrium quantity in a market
Q113: The key condition for equilibrium to occur