The Case in Point on obesity suggests that food prices are lower because of:
A) an increase in the in the demand for food only.
B) an increase in the supply of food only.
C) an increase in the demand for food was less than the increase in the supply of food.
D) an increase in the supply of food that was less than the increase in demand for food.
Answer: C) an increase in the demand for food was less than the increase in the supply of food.
You might also like to view...
In which of the following sets of circumstances can we confidently expect inflation?
A. Aggregate supply decreases and aggregate demand increases. B. Aggregate supply increases and aggregate demand decreases. C. Aggregate supply and aggregate demand both increase. D. Aggregate supply and aggregate demand both decrease.
Assume the demand for a good is price inelastic, i.e., ed < 1 (in absolute value). This means that if price decreases by 50 percent, quantity demanded will:
A) increase by more than 50 percent. B) decrease by more than 50 percent. C) increase by less than 50 percent. D) decrease by less than 50 percent.
Firms who effectively differentiate their product from their competitors' products do so by having:
A. real, not just perceived, differences in product design. B. perceived, but not real, differences in product design. C. real or perceived differences in product design. D. None of these statements is true.
When regulations interfere with exchange and limit entry into various businesses and occupations, they will
a. help a country achieve more rapid economic growth. b. promote more efficient use of investment capital by entrepreneurs. c. retard economic progress. d. increase the profits of business firms.