Economics Question

[Justin]

I am stuck on this question and am hoping someone can help. I am pretty sure the answer is either A or C, but what is the difference between A and C. They seem like the same answer to me.



In a competitive market, if the existing price is below the equilibrium price, market forces will drive the price:

Choose an Answer:
A. up and quantity supplied up.

B. up and quantity supplied down.

C. up and supply up.

D. down and demand down.

[winner2000]

"Supply up" would involve a SHIFT of the supply curve while "Quantity supplied up" would involve a move ALONG the existing supply curve.

[Justin]

So, A would be the correct answer then, right?

[sunnybono]

correct, A is the answer

[Nibr]

Why would the quantity supplied increase if the price is below equilibrium? I think the answer is "B".

[divx]

A, final answer

[ElChico]

I'll agree. A is the answer.

[Justin]

Here is another question for you smart RFD people. A & D and B&C seem like the same answer. Thanks



Assume that a tradeoff exists in the short run between inflation and unemployment. This relationship means that:


Choose an Answer:
A. a low rate of unemployment causes a low rate of inflation.

B. a high rate of inflation causes a low rate of unemployment.

C. less unemployment can be achieved with more inflation.

D. less unemployment can be achieved with less inflation.

[YLSF]

They aren't the same at all.. One is talking about "Causing" the other is talking about both existing at the same time. I think the answer is "C"... I SHOULD know this but it is 12:30am and I am tired .. my excuse ;)

[ElChico]

Use your Phillips curve...What's with all the Econ questions?

[Justin]

Use your Phillips curve...What's with all the Econ questions?

I'm doing an online test. I figured RFD was worth a try for a couple questions i am stuck on