In a market, if the price is lower than the equilibrium price, A. the quantity supplies exceeds the quantity demanded, so there is a surplus.
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Why is the AD curve downward sloping? 1. The higher interest rate produced by a lower price
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If the consumption function: C = $350 + 0.9Yd a) At what level of income does savings equal zero? b) If this economy’s disposable income were $4,000,…

If the consumption function: C = $350 + 0.9Yda)At what level of income does savings equal zero?b)If this economy’s disposable income were $4,000, what would be its consumption and savings?

 

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