When the Price Is $3

question 111

Multiple Choice

When the price is $3

• A)quantity supplied is greater than quantity demanded and,therefore,price must rise to get back to equilibrium.
• B)quantity supplied is greater than quantity demanded and,therefore,price must fall to get back to equilibrium.
• C)quantity demanded is greater than quantity supplied and,therefore,price must rise to get back to equilibrium.
• D)quantity demanded is greater than quantity supplied and,therefore,price must fall to get back to equilibrium.
• E)None of these choices are correct.

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Definitions:

Tax Cuts

Reductions in the amount of taxes imposed by a government on individuals or entities.

Economic Growth

An increase in the production of goods and services in an economy over a period of time, usually measured by the rise in GDP.

Federal Budget Deficit

A situation where the federal government's expenditures exceed its revenues within a given fiscal year.

Paradox of Thrift

If everyone tries to save more, they will all end up saving less.