7. The price of construction materials has risen dramatically in 2021. This means that: a. There had been a surplus of materials right before prices began to rise. b. The information being conveyed was that the price of construction materials was above equilibrium before prices increased. Now, because of higher prices there is most likely a surplus. c. Quantity demanded was greater than quantity supplied right before prices started to rise. Now, the market is most likely closer to, or at, an equilibrium condition if prices are stable at this time. d. As prices have increased demand decreased, leading the market to a place where the invisible hand no longer is putting upward pressure on prices. e. B and D only. 8. When Adam Smith talked about "the invisible hand" he argued that: a. High transaction costs normally prevent markets from achieving equilibrium. b. Prices, in the long run, end up were both fairness and efficiency are achieved. c. Changing prices leads to an "end" which buyers and sellers are not totally pleased with, but one that is efficient. d. Create mutually agreed upon prices over time if the market is free of outside interference. e. Does not work as well as price ceilings and floors, which tend to promote more efficient outcomes. f. C and D only