Which determinant MIGHT increase supply in the market?
A) an increase in the price of complementary goods
B) an increase in the number of sellers of a product
C) an increase in the number of consumers in the market
D) an increase in the price of inputs to make the product
Answer: B) an increase in the number of sellers of a product
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A revaluation of the exchange rate is a policy action that
A) increases the real exchange rate. B) decreases the real exchange rate. C) increases the nominal exchange rate. D) decreases the nominal exchange rate.
In a perfectly competitive market, producers:
A. are able to sell as much as they want without affecting the market price. B. can influence the price upward by restricting output. C. often undercut the competition's price and force firms to leave the market. D. None of these is true of perfectly competitive markets.
Agreeing with Keynesian economists, monetarists believe that the economy is subject to disequilibrium that must be corrected by government action
a. True b. False Indicate whether the statement is true or false
Which of the following statements is correct?
a. The use of pollution permits and corrective taxes reduces the cost of environmental protection. b. Rich countries usually have cleaner environments than poor countries because a clean environment is like other normal goods in that it has a positive income elasticity. c. Clean water and clean air are goods to which the law of demand applies. d. All of the above are correct.