If the price of a commodity is fixed below equilibrium, t...
If the price of a commodity is fixed below equilibrium, this will lead to
Excess demand
A decrease in price
An increase in price
Excess supply
Correct answer is A
Just like the law of demand, the higher the price, the lower the quantity demanded and the lower the price the higher the quantity demanded. When the prices of goods are set below equilibrium, it will invariably lead to high demand for the product.
A necessary condition for specialization in an economy is the existence of ...
The law of diminishing returns is applicable to the__________ ...
Economist speaks about ‘opportunity cost’ when a consumer ...
Government intervention in an economy is often justified on the ground that ...
The supply of cocoa is influenced by ...
Which of the following factors is not a reason for farmer's unstable incomes? ...
The population of a country will decrease if ...
The economic policy of deregulation is aimed at encouraging ...