If the Price Is Above the Equilibrium Price in the Market

question 135

Multiple Choice

If the price is above the equilibrium price in the market for grapefruit, total surplus:

• A)will increase.
• B)will decrease.
• C)will not change.
• D)may change, but we cannot determine the change without more information.

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Definitions:

Volatile

Describing an asset or market with frequent, significant price changes over a short period.

Kondratieff

A theory proposing that Western capitalist economies have long-term (50 to 60 years) cycles of boom and bust, named after Russian economist Nikolai Kondratiev.

Macro Economy

Refers to the study of the overall aspects and workings of an economy, including inflation, unemployment, and economic growth.

Intervals

In statistics and mathematics, a range between two numbers where data points can lie, often used in the context of confidence intervals in research.