Which of the following statements represents a correct sequence of events?
A) Productivity rises in the agriculture sector, the supply curve of foodstuffs shifts to the left, price rises, and total revenue rises assuming demand is inelastic.
B) Productivity rises in the agriculture sector, the supply curve of foodstuffs shifts to the right, price rises, and total revenue rises assuming demand is inelastic.
C) Productivity rises in the agriculture sector, the supply curve of foodstuffs shifts to the right, price falls, and total revenue falls assuming demand is elastic.
D) Productivity rises in the agriculture sector, the supply curve of foodstuffs shifts to the left, price falls, and total revenue rises assuming demand is elastic.
E) none of the above
C
You might also like to view...
If consumption behavior can be described as C = 50 + .8Y, then the saving function is
A) S = 50 + .2Y. B) S = -50 + .2Y. C) S = -50 + .8Y. D) S = 50 + .8Y.
Some nations avoid the effects of trade deflection in a trade bloc by enforcing
A) trade deflection. B) trade diversion. C) quotas. D) rules of origin.
A perfectly competitive firm decides to shut down if:
a. the price falls below the average-total-cost. b. average revenue falls below the average-variable-cost. c. the price falls below the marginal cost. d. the average revenue curve lies below the marginal cost curve. e. the total revenue is less than total cost.
Which of the following would be counted in U.S. GDP?
a. The salary of an American professor teaching in England b. The value of a used U.S.-produced car purchased in the U.S. c. The value of a new U.S.-produced car purchased by a French citizen d. The value of a new French-produced car purchased by a U.S. citizen within in the U.S. e. The value of a General Electric corporate bond bought by a Japanese citizen