What will be the principal and most immediate effect on the supply or demand for raw cotton grown in the United States if the demand for peanuts (which can be grown on cotton land) increases?
A) Decrease in demand
B) Decrease in supply
C) Increase in demand
D) Increase in supply
B
You might also like to view...
Suppose the market for hot pretzels in New York City is perfectly competitive. What is true of demand in this market?
a. The demand curve facing each seller is perfectly elastic. b. The demand curve facing each seller is perfectly inelastic. c. The market demand curve is perfectly elastic. d. The market demand curve is perfectly inelastic. e. The market demand curve is elastic.
If two investments are perfectly positively correlated:
A. there is no benefit from diversification. B. bets are perfectly hedged and risks are canceled out. C. diversification reduces risk without changing the expected payoff. D. diversification reduces both risk and the expected payoff.
Externalities require government intervention when
A. violence will result between disputing parties. B. there are only a few sellers in the market. C. property rights are not clearly established. D. the government imposes sales taxes. E. all of these answer options are correct.
Based on the graph showing marginal cost pricing versus average cost pricing, society achieves allocative efficiency at point ______.
a. A
b. B
c. C
d. PMC, Qm