If the price of a good or service is above the equilibrium price then the supply and demand model predicts that there will be excess supply (also known as a "surplus") excess demand (also known as a "shortage") O both a surplus and a shortage none of the above

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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Please see the pictures below. I just need verification on the answers I have chosen, please and thank you. 

 

Two goods are said to be substitutes if an increase in income results in a decrease in
demand.
True
O False
Transcribed Image Text:Two goods are said to be substitutes if an increase in income results in a decrease in demand. True O False
If the price of a good or service is above the equilibrium price then the supply and
demand model predicts that there will be
excess supply (also known as a "surplus")
excess demand (also known as a "shortage")
both a surplus and a shortage
none of the above
Transcribed Image Text:If the price of a good or service is above the equilibrium price then the supply and demand model predicts that there will be excess supply (also known as a "surplus") excess demand (also known as a "shortage") both a surplus and a shortage none of the above
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