Which of the following would cause an increase in the supply of peanut butter?
A) a decrease in the price of grape jelly (assuming that peanut butter and grape jelly are complements)
B) an increase in the price of peanut butter
C) an increase in the number of firms that produce peanut butter
D) an increase the price of a product that producers sell instead of peanut butter
C
You might also like to view...
Joe runs a business and needs to decide how many hours to stay open. Figure 2.2 illustrates his marginal benefit of staying open for each additional hour. Suppose that we observe Joe staying open 5 hours per day
If he is following the marginal principle, what must his marginal cost per hour be? A) $16 B) $24 C) $32 D) $40
The ________ the desired reserve ratio, the ________ the ________ in the quantity of money created from an initial increase of $100,000 in the monetary base
A) smaller; larger; decrease B) larger; larger; decrease C) larger; smaller; decrease D) smaller; larger; increase E) larger; larger; increase
Why does the production possibilities frontier have a bowed out shape rather than being a straight line?
What will be an ideal response?
Refer to the figure above. What is the domestic price of pens in Lithasia?
A) $1 B) $2 C) $3 D) $6