Toby sells wheat in a perfectly competitive market. This month Toby receives a higher price for a bushel of wheat than he did last month. Which of the following might explain this?

A. The market demand for wheat increased.
B. The market demand for wheat decreased.
C. Firms entered the market.
D. Toby's costs have decreased.


Answer: A

Economics

You might also like to view...

Auctions can be differentiated on the basis of ________

A) the number of buyers B) the number of sellers C) the way in which people place their bids D) the degree of competition among buyers

Economics

In Figure 3-6 above, at point J

A) there is unplanned inventory investment. B) there is unplanned inventory disinvestment. C) there is no change in inventory levels. D) intended and unintended inventory investment are equal.

Economics

Regulatory capture exists when

A. regulated firms form special interests and influence politicians who appoint regulators through campaign donations. B. regulated firms pay for favorable public media campaigns. C. the federal government successfully deregulates an industry. D. two or more firms merge to gain a majority market share.

Economics

What are some of the possible ways in which we could reduce the natural rate of unemployment?

What will be an ideal response?

Economics