1. Immediately after a hurricane, it is likely that the quantity demanded for tree cutting/removal services will ______ the quantity supplied, causing the price of tree cutting/removal services to ______.
A. equal; remain unchanged
B. be less than; rise
C. exceed; rise
D. decrease; fall
2. The question of who pays the greater amount of a commodity tax is determined by:
A. Congress.
B. the President of the United States.
C. the relative elasticities of demand and supply.
D. the individual who writes the check for the tax.
3. Suppose that the equilibrium price in the market is $10. If the current market price is $7.50:
A. the equilibrium price will fall to $7.50.
B. competition among buyers will increase the current price.
C. the current price will fall below $7.50 as sellers compete for market share.
D. There is not enough information provided to answer the question.