Author Question: A surplus occurs when the price is A) less than the equilibrium price. B) equal to the ... (Read 69 times)

sdfghj

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A surplus occurs when the price is
 
  A) less than the equilibrium price.
  B) equal to the equilibrium price.
  C) greater than the equilibrium price.
  D) None of the above because the existence of a surplus is independent of the price of the good.

Question 2

Given the budget line in the above figure, which of the following combinations of pizza and milk are affordable?
 
  A) 0 pizzas, 12 gallons of milk
  B) 2 pizzas, 2 gallons of milk
  C) 4 pizzas, 4 gallons of milk
  D) All of the above combinations are affordable.



vkodali

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Answer to Question 1

C

Answer to Question 2

B



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