What is the best example of the law of supply?
What will be an ideal response?
Answer: A sandwich shop increases the number of sandwiches they supply every day when the price is increased.
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Dairy price supports have the effect of _____
a. decreasing the value of farmland b. increasing the value of farmland c. destroying farmland d. increasing consumption of dairy products
The shape of short-run variable cost curve is determined by
a. the firm's effort to minimize cost b. the firm's effort to maximize profit c. competition in the industry d. the marginal productivity of the variable inputs the firm uses e. the money the firm spends
If the government imposes a price floor above the market equilibrium price, then:
a. b and e. b. there will be excess supply. c. there will be excess demand. d. consumers will benefit. e. producers will benefit.
The Fed increases reserves if it conducts open market
a. purchases or auctions term credit. b. purchases but not if it auctions term credit c. sales or auctions term credit d. sales but not if it auctions term credit