Which of the following will hold true if the market for cameras is in equilibrium at a price of 40?
A) The quantity of cameras produced will equal the quantity of cameras bought in the market.
B) Sellers of cameras will have an incentive to charge a price higher than 40.
C) Buyers of cameras will want to buy fewer cameras than they are purchasing at equilibrium.
D) If the cost of producing cameras falls below 40 per camera, all sellers will stop supplying cameras.
Question 2
Tax policy conducted for the purpose of achieving full employment, price stability, or economic growth is an example of
A) discretionary fiscal policy. B) interest-rate policy.
C) monetary policy. D) exchange-rate policy.
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Markets and Institutions Market Story Problem