The graph illustrates the market for bottled water. When the ...

[armygirl]

The graph illustrates the market for bottled water. When the price exceeds the equilibrium price, the quantity demanded is ________ the quantity supplied and the price of the good will ________.
 
  A) less then; fall
  B) greater than; fall
  C) equal to; fall
  D) less than; rise
  E) greater than; rise

Question 2

You borrow at a nominal interest rate of 10 percent. If the inflation rate is 4 percent, then the real interest rate is
 
  A) 6 percent.
  B) 14 percent.
  C) the 10 in interest you have to pay.
  D) 16 percent.
  E) 2.5 percent.

[marict]

Answer to Question 1

A

Answer to Question 2

A