If there is a shortage in the market for automobiles, then
a. producers' inventories will rise
b. the price should begin to rise
c. the demand curve will shift to restore equilibrium in the market
d. the supply curve will shift to restore equilibrium in the market
e. the price is expected to fall
QUESTION 2If there is a shortage in the market for athletic shoes,
a. the price should rise to eliminate the shortage
b. inventories of athletic shoes will grow
c. demand will decrease to restore equilibrium
d. firms will reduce production to restore equilibrium
e. supply will increase to restore equilibrium
QUESTION 3A shortage occurs whenever
a. quantity demanded exceeds quantity supplied at the equilibrium price
b. price is less than equilibrium price
c. quantity demanded is less than quantity supplied
d. goods are scarce
e. some of the people who need the product are not willing and able to buy it at the equilibrium price
QUESTION 4A shortage of textbooks will cause
a. a decrease in the supply of textbooks
b. a decrease in the demand for textbooks
c. both an increase in the supply of textbooks and a decrease in the demand for textbooks
d. an increase in the price of textbooks, caused by a shift of either the supply curve or the demand curve
e. an increase in the price of textbooks
QUESTION 5If a surplus exists in the market for swimwear, an economist would predict that
a. the price of swimwear will rise
b. producers will increase the production of swimwear
c. the supply of swimwear will increase
d. the price of swimwear at retail outlets will begin to fall
e. buyers will react to the surplus by increasing their demand for swimwear
QUESTION 6Suppliers recognize there is a shortage in the market for their product when they notice that
a. the quantity supplied exceeds the quantity demanded
b. the quantity demanded is falling
c. inventories are falling
d. production exceeds new orders for the product
e. government economists announce a shortage exists
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