Author Question: If a surplus exists in the market for swimwear, an economist would predict that a. the price of ... (Read 61 times)

B · **on:** Jul 1, 2018

If a surplus exists in the market for swimwear, an economist would predict that
a. the price of swimwear will rise
b. producers will increase the production of swimwear
c. the supply of swimwear will increase
d. the price of swimwear at retail outlets will begin to fall
e. buyers will react to the surplus by increasing their demand for swimwear

Question 2

Suppliers recognize there is a shortage in the market for their product when they notice that
a. the quantity supplied exceeds the quantity demanded
b. the quantity demanded is falling
c. inventories are falling
d. production exceeds new orders for the product
e. government economists announce a shortage exists