If the market price is higher than the equilibrium price. a surplus exists and the market price will fall until it equals the equilibrium price and the surplus is eliminated. a shortage exists and the equilibrium price will rise until it equals the market pri ...
If a good is produced using inputs for which there are no substitutes, the good’s A) elasticity of supply is likely to be small. B) elasticity of supply is likely to be large. C) elasticity of demand will be small. D) elasticity of demand will be large.
If a fall in the price of good A increases the quantity demanded of good B, (A)B is a substitute for A, but A is a complement to B (B) A and B are complements (C)A is a substitute for B, but B is a complement to A (D)A and B are substitutes