Author Question: A shortage exists in the market for corn at the prevailing price. The shortage will be eliminated by ... (Read 101 times)

mspears3 · **on:** Jun 30, 2018

A shortage exists in the market for corn at the prevailing price. The shortage will be eliminated by a price:
a. increase, increasing the supply and decreasing the demand.
b. decrease, increasing the supply and decreasing the demand.
c. decrease, increasing the quantity supplied and decreasing the quantity demanded.
d. increase, increasing the quantity supplied and decreasing the quantity demanded.

Question 2

Justification of a government program based on the jobs that it will create rather than the merits of the program itself is known as the:
a. law of unintended consequences.
b. invisible hand.
c. crowding out effect.
d. broken window fallacy.