Suppose the equilibrium price of oranges is 2.00 per pound. If ...

[Capo]

Suppose the equilibrium price of oranges is 2.00 per pound. If the actual price is above the equilibrium price a
 
  A) shortage exists, and the price falls to restore equilibrium.
  B) surplus exists, and the price rises to restore equilibrium.
  C) shortage exists, and the price rises to restore equilibrium.
  D) surplus exists, and the price falls to restore equilibrium.
  E) surplus exists, but nothing happens until either the demand or the supply changes.

Question 2

If a one-year bond is purchased for 700 and the interest rate is 5 percent, what will it pay in one year?
 
  A) 35 B) 665 C) 735 D) 770

[whitcassie]

Answer to Question 1

D

Answer to Question 2

C

[Capo]

Gracias!

[kthug]

Thanks for the timely response, appreciate it