The following statements which are true about Truman's Fair Deal was that c) It called for national medical insurance. However, the Fair Deal did not really come about, as only little proposals were enacted and this was after long debate in Congress. Truman's major items were never legislated.
The Americans were upset over the Stamp Act because Great Britain imposed an internal tax on all paper documents in her colonies. If the Americans wanted anything printed, it had to be printed in the United Kingdom and there was a tax or levy imposed on the printed documents. The reason for the Stamp Act was that Great Britain was in debt after the Seven Years War, and she was looking to recoup her losses after the war. Needless to say, the Americans were very unhappy that they were being punished for the war.
The economy operates according to the law of supply and demand for goods and services. According to this theory, the interaction between supply and demand for a good or service fits and the vector of adjustment is price.
If the price is high, there is more supply than demand. If the price is low, there is more demand than supply. If demand increases, price increases and supply increases. If demand falls, the price falls. That is, the price makes the interaction. There will be a moment where the quantity offered is exactly equal to the quantity demanded, at which point the price practiced is the equilibrium price.
So if an economy is in equilibrium at a time and then the price charged is higher than the equilibrium price, it means that demand has gotten higher than supply.
<u>However, none of the alternatives would explain why a price is charged above the equilibrium price.</u> <u>The answer is the reverse of what is written in alternative (A)</u>. The truth is this: As the quantity demanded rises, the price rises above the equilibrium price. <u>This is the answer</u>.
The alternative (B) is true, although it does not answer the question of the problem. If prices rise, demand falls. This is because the high price discourages consumption.
BTW, I'm an economist and I'm sure.
