Suppose that the price of doughnuts decreases. Given that doughnut holes are a by-product of producing doughnuts, one would expect:
A. the supply of doughnuts to increase.
B. the supply of doughnut holes to increase.
C. the supply of doughnut holes to decrease.
D. the supply of doughnuts to decrease.
Answer: C
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The mean of a data set is the:
A) product of all values divided by the number of values. B) sum of all different values multiplied by the number of values. C) difference between the highest value and the lowest value. D) sum of all different values divided by the number of values.
When 2,000 hamburgers per day are produced, the marginal social benefit is $1.50 and the marginal social cost is $1.00. And when 7,500 hamburgers per day are produced, the marginal social benefit is $1.00 and the marginal social cost is $1.50
The efficient production quantity of hamburgers is ________ a day. A) more than 7,500 B) 7,500 C) between 2,000 and 7,500 D) 2,000
Which of the following would cause a credit to the U.S. balance of payments?
a. a group of U.S. citizens goes to New Zealand for a vacation. b. General Motors pays a dividend to a citizen of Brazil. c. Lloyd’s of London makes an insurance payment to a U.S. resident. d. Russia cancels its purchases of U.S. wheat and buys wheat from Argentina.
In an open economy, an increase in capital inflows ________ the equilibrium domestic real interest rate and ________ the quantity of domestic investment.
A. increases; decreases B. increases; increases C. decreases; decreases D. decreases; increases