Suppose you are the manager of Good Smells, a home fragrance firm. To make your fragrance, you purchase orange peels from orange juice manufacturers. If the demand for orange juice decreases, this will cause the production of orange juice peels to ________ and the price of orange juice peels to ________.
A) decrease; fall
B) increase; fall
C) increase; rise
D) decrease; rise
D) decrease; rise
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Refer to the above table. The balance of trade is
A) $1000. B) -$665. C) +$335. D) -$155.
Suppose a monopolist and a perfectly competitive firm have the same cost curves. The monopolistic firm would:
a. charge a lower price than the perfectly competitive firm. b. charge a higher price than the perfectly competitive firm. c. charge the same price as the perfectly competitive firm. d. refuse to operate in the short run unless an economic profit could be made. e. refuse to operate in the short run if an economic loss was present.
Most state governments finance their budgets through ____, and most local governments finance their budgets through ____.
A. income taxes; property taxes B. property taxes; sales taxes C. sales taxes; property taxes D. income taxes; sales taxes
The marginal rate of substitution:
A. may increase or decrease on a given indifference curve, depending on whether the substitution or the income effect is dominant. B. increases as one moves southeast along an indifference curve. C. is constant at all points on the budget line. D. declines as one moves southeast along an indifference curve.